Category: Brand

The pandemic caused by the global spread of coronavirus led to substantial changes in all spheres of life and industries. In particular, it impacted consumer behavioral patterns and peoples attitude to a well-recognized brand name that assures quality and instills trust (Chan, 2021, par. 1). That is why after the pandemic, hoteliers focused on strategies to exceed consumers expectations that were not limited by service offerings and costs. At the same time, considering the peculiarities and functions of brands, it is possible to assume that strong hotel brands are fitter for the recovery after the COVID-19 pandemic and have more opportunities to attract new consumers and keep loyal ones.

In general, the post-pandemic hotel industry has experienced a shift from brand multiplicity and brand portfolios to brand authenticity. Authenticity may be defined as a holistic consumer assessment determined by six component judgments (accuracy, connectedness, integrity, legitimacy, originality, and proficiency) whereby the role of each component can change according to the consumption context (Nunes, Ordanini and Giambastiani, 2021, p. 2). In other words, the authenticity of hotel brands implies such values as faithfulness, honesty, responsibility, and support within the framework of current global events.

Moreover, the pandemic era requires the application of modern technologies in order to provide safety for consumers. They traditionally include virtual guest communications, online booking and check-in, mobile payment, touchless transactions, the use of robotics and AI, and multiple other options to ensure social distancing, the reduction of interpersonal interactions, and contactless consumption (Chan, 2021; Eggleston and Lee, 2021; Kim and Han, 2022). In addition, the role of the personalization of customer experience has emerged as well. That is why in the present day, a considerable number of customers report that they are looking for familiar hotel brand names and pay attention to the rate of lodging rather than prices (Chan, 2021; Eggleston and Lee, 2021). All in all, hoteliers efforts in strengthening their brand identities and creating brand values are strongly appreciated.

Taking into consideration brands peculiarities and new customer behavioral patterns, it can be inferred that strong hotel brands have more opportunities to adapt to the industrys post-pandemic requirements. First of all, brands are recognizable, persuasive, flexible, transferable, and legally protectable. Due to its reputation, a brand generates a feeling of security and reduces functional, financial, social, physical, and psychological risks. In other words, by choosing strong hotel brands, people are expected to receive the highest quality of service. Offering safety and establishing trust through interaction with customers, brands contribute to their retention and loyalty. Moreover, brands flexibility allows them to adapt rapidly to global changes and associated shifts in consumer behavior. Finally, due to a strong self-representation and identity, any introduced innovations will be regarded as reliable and beneficial.

The benefits of a strong brand identity may be supported by real-life examples. Thus, Intercontinental Hotels Group (IHG) states: Were responding quickly and thoughtfully, ensuring that we do the right thing for our guests, colleagues, hotels and owners, plus the many local communities of which were proud to be a part (IHG, no date, par. 1). The flexibility of the company allowed it to adapt to new requirements related to safety, cleanliness, and contactless interaction. In particular, new standards of service were introduced in relation to public spaces, food and beverage, operating procedures, and events.

Moreover, the flexibility of IHG is reflected in the companys attitude to consumers plans that may be affected by the pandemic and associated regulations. That is why IHG launched the Confidence programme which banned cancellation fees and introduced discounts for IHGs business customers (IHG, no date). In addition, the company focuses on the personalization of clients services in accordance with their interaction with it in order to impact their experience. For instance, IHG offers special benefits for the loyalty members of its IHG Rewards program (IHG, no date). People who visit the companys hotels or resorts several times earn points and gain statuses for bonuses, such as free nights and discounts for a stay. Moreover, considering the pandemic that made journeys unavailable, IHG paused points expiration and reduced the criteria required for statuses.

To conclude, the example of IHG supports the statement that strong hotel brands are less vulnerable to failure due to the COVID-19 pandemic. First of all, their reputation, well-articulated self-representation, focus on authenticity, and flexibility allow them to serve customers more efficiently and adapt their services in accordance with changing needs and expectations. From brands, customers are expected a particular level of quality and visit them again when they receive it. In turn, brand hotels focus on making services personalized, introduce technologies for safety, and emphasize that customers support is their top priority. It goes without saying that in the post-pandemic period, hotels should continue following their chosen strategies, however, Star Consulting recommends paying particular attention to consumer feedback as it may attract more clients. For instance, hotels may interact with customers online and stimulate sharing their opinions related to the quality of services to strengthen brand awareness. In this case, people will have more desire to choose a brand that is not only well-recognized, but its safety is approved by others as well. At the same time, this business strategy allows to boost sales and contributes to clients loyalty.

Reference List

Chan, E. (2021) Marketing: from brand multiplicity to brand authenticity.

Eggleston, K. and Lee, M. (2021) Hospitality industry moves into post-pandemic recovery mode.

Kim, J. J. and Han, H. (2022) Saving the hotel industry: strategic response to the COVID-19 pandemic, hotel selection analysis, and customer retention, International Journal of Hospitality Management, 102, pp. 1-12.

IHG (no date) Our response to Covid-19.

Nunes, J. C., Ordanini, A. and Giambastiani, G. (2021) The concept of authenticity: what it means to consumers., Journal of Marketing, 85(4), pp. 1-20. doi: 10.1177/0022242921997081

Head Office Location

Address Information

The headquarters of Accor is situated in Tour Sequana, Issy-les-Moulineaux, within commuting distance of the southwest district of Paris, France. Accors main office is located at its headquarters in Paris, France. The actual postal address for their headquarters is:

• 82 Rue Henri Farman CS 20077 Issy-les-Moulineaux, 92130 France.

Contact Information

Accor S.A. offers multiple ways to connect with them. Two main ways can be to call on the Companys phone number and to chat through the Companys website. Phone numbers of the Company are listed as:

• Phone: +1(331)45388800.
• Website.

History of the Brand

Accor was formally established as the SIEH group and began operations in 1967 by managing a Novotel hotel in France. Later, in 1974, the firm expanded its range by opening an ibis hotel in Bordeaux, France. In 1981, the corporation expanded into the Asian market via Singapore. The Novotel-Sieh company and Jacques Borel International amalgamated to become the Accor group. The name Accor, which means accord or agreement, represented the merger that led to the establishment of the firm (Jarman-Walsh, 2018). In the years that followed, the firm added numerous new brands to its portfolio and merged with others, resulting in the development of its business.

Currently, Accor continues to grow its operations in new market segments ingeniously. It separated its operations into two primary segments, with one focusing on hospitality services and the second on asset management, including hotels and other ventures. Additionally, the corporation enhanced its brand image as a premier supplier of hospitality services. The firm is now attempting to acquire other brands to broaden and diversify its operations. Hence it may be considered a period of rapid expansion (Jarman-Walsh, 2018). This growth included adding additional services to its core brands, such as online tour and travel management services, and extending into other nations to become globalized.

Number of Properties by Sub-brand

Continent	Number of Sub-Brands
South Europe	1913
Asia Pacific	1285
North Europe	1142
Americas	539
India, Middle East. Africa and Turkey region (IMEAT)	419

Job Postings

Number of Job Postings Currently Posted

• Administration and Support: 143 Opportunities.
• Business Development: 15 opportunities.
• Corporate Social Responsibility: 3 Opportunities.
• Culinary: 1094 Opportunities.

Positions Posted and their Job Description

Position One

• Personal Assistant to General Manager
• Novotel Mumbai International Airport
• Location: Mumbai, Maharashtra, India
• Category: Administration & Support.

Ensure that the departments day-to-day administrative requirements are met. Perform responsibilities within the parameters established by the Companys standards and the hotels internal rules (Accor  World-leading hotel group in hospitality, n.d.). The personal assistant manager will assist with addressing internal or external customers, screen calls and direct mail and manage requests and inquiries

Position Two

• Sales & Events Coordinator
• Sofitel New York
• Location New York, New York, United States
• Category: Administration & Support

As a Sales Coordinator, the Accor Branch of Sofitel New York needs a self-motivated, rising hospitality expert. The Sales & Events Coordinator will assist in the planning and coordinating of the organizations operations (Accor  World-leading hotel group in hospitality, n.d.). The hotel event organizer ensures events go well and as planned. They should develop organizer plans for weddings, conferences, and government meetings.

Position Three

• Senior Project Manager Sustainability
• Accor Hotel services U.K. & Ireland
• Location: London, England, United Kingdom
• Category: Corporate Social Responsibility

As the global leaders in Augmented Hospitality, Accor Hotel Services U.K. and Ireland are looking for a Senio Project Manager Sustainability. General tasks include overseeing the yearly sustainability report and environmental standards. The individual will develop messages depending on the organizations goals and then pick the most suitable medium. They encourage internal and external stakeholders to adopt and execute environmentally friendly methods. They may monitor agency contracts.

Comparing Sub-brands by Level of Service and Amenities

Sub-Brand	Service Level	Services, Amenities, Food and Beverage OutletsOffered
Jo&Joe	Economy	Services: Spa Amenities: Swimming pool Foods: Italian food Beverage outlets: Coke and Pepsi
ibis Styles	Economy	Services: Spa Amenities: Swimming pool and TV Foods: Russian food Beverage outlets: Coke and Pepsi
ibis budget	Economy	Services: Spa, parking, poolside bar Amenities: Swimming pool Foods: Tray service food Beverage outlets: Coke and Pepsi
Sofitel Legend	Luxury	Services: parking, poolside bar Amenities: Swimming pool Foods: Gueridion food Beverage outlets: Coke and Pepsi
Rixos	Upscale	Services: poolside bar Amenities: Swimming pool Foods: American food Beverage outlets: Coke and Pepsi
Raffles Hotels and Resorts	Luxury	Services: parking, poolside bar Amenities: Swimming pool Foods: French food Beverage outlets: Coke and Pepsi
Orient Express	Luxury	Services: poolside bar Amenities: Swimming pool Foods: French food Beverage outlets: Coke and Pepsi
Morgans Originals	Luxury	Services: poolside bar Amenities: Swimming pool Foods: French food Beverage outlets: Coke and Pepsi
Fairmont Hotels and Resorts	Luxury	Services: poolside bar Amenities: Swimming pool Foods: French food Beverage outlets: Coke and Pepsi
Faena	Luxury	Services: Spa Amenities: Swimming pool Foods: French food Beverage outlets: Coke, Nestle and Pepsi
Emblems Collection	Upscale	Services: Spa Amenities: Swimming pool Foods: Italian food Beverage outlets: Nestle and Pepsi
Delano	Luxury	Services: Spa Amenities: Swimming pool Foods: Italian food Beverage outlets: Coke and Nestle
Banyan Tree Hôtels and Resorts	Luxury	Services: poolside bar Amenities: Swimming pool Foods: Italian food Beverage outlets: Nestle and Pepsi
Tribe	Upscale	Services: poolside bar Amenities: Swimming pool Foods: Italian food Beverage outlets: Coke and Pepsi
Novotel	Midscale	Services: poolside bar Amenities: Swimming pool Foods: Italian food Beverage outlets: Nestle and Pepsi
Mercure	Midscale	Services: Spa Amenities: Swimming pool Foods: Italian food Beverage outlets: Coke and Nestle
Mantra	Midscale	Services: Spa Amenities: Swimming pool Foods: Italian food Beverage outlets: Nestle and Pepsi
Mama Shelter	Upscale	Services: poolside bar Amenities: Swimming pool Foods: American food Beverage outlets: Coke and Pepsi
Aparthotel Adagio	Midscale	Services: Spa Amenities: Swimming pool Services: poolside bar Beverage outlets: Coke and Pepsi
The Sebel	Premium	Services: Spa Amenities: Swimming pool Foods: Italian and American food Beverage outlets: Coke and Pepsi, Heinken
Swissôtel	Premium	Services: Spa Amenities: Swimming pool Foods: Italian and English food Beverage outlets: Coke, Diageo and Pepsi
Pullman	Upscale	Services: poolside bar and spa Amenities: Swimming pool Foods: Italian food Beverage outlets: Coke, Fomento and Pepsi
Peppers	Upscale	Services: poolside bar Amenities: Swimming pool Foods: Italian food Beverage outlets: Coke, Fomento and Pepsi
Mövenpick	Premium	Services: poolside bar Amenities: Swimming pool Foods: Italian food Beverage outlets: Fomento and Pepsi
Mondrian	Premium	Services: Spa Amenities: Swimming pool Foods: Italian food Beverage outlets: Fomento and Pepsi

Social Media

Reflecting on Your Study of Hotels

The alternatives they provide frequent visitors discourage them from booking with a competitor, ensuring continued leisure and business travel revenue. The brands worth increases as a result, and so does the number of potential owners. The costliest accommodations are out of reach for most people. Companies provide a range of hotel quality options to satisfy the widest possible customer base. If a firm has a corporate rate or arrangement with the hotel, its employees may remain there rather than pay the higher daily rate.

Room Categories for Hotels with Cruise Ships

Accor port hotels which are part of the Accor hotel brand operate cruise ships. One of the port hotels that Accor possesses is located in Southampton, serving Englands southern coast. For this hotel, a customer gets to enjoy evening outs at eateries and entertainment venues with an ambience. Additionally, the cruise ships hotels allow their clients to enjoy while crossing over channels with ferries or when they sail on large seas such as the Mediterranean. Nevertheless, these hotels constitute rooms of various categories ranging from interior, ocean view, suites and luxury suites. Interior cabin rooms are the cheapest and most basic rooms and constitute a bunk bed for limited square footage. Besides, the ocean view rooms are those that entail a bigger bed and a large window, allowing scenic experience of the ocean. On the other hand, the suites are divided into primary suites which constituted a plush bedding and are more spacious and luxury suites which are lavishly furnished allowing family vacations. These hotels may resemble or differ from those located on land as outlined by the table below.

Similarities and Differences between Hotels on Land and at Sea

Similarity	Difference
Both types of hotels adopt similar multiple sub-brand strategies in the marketing	Based on the organizational structure, sea hotels adopt the hierarchy design while land team manger strategy.
Both hotels have various rooms categories, including suites and luxury suites.	Land hotels have a more diverse staff composition while sea hotels are homogeneous.
Both hotels target various customers including the extravagant and the common clients.	Cruise hotels offer services while in motion but land hotels offer services while stationary as they are permanently built on land.

References

Accor  World-leading hotel group in hospitality. (n.d.). ACCOR.

Jarman-Walsh, J. (2018). 2030 Sustainable development goals (SDGs) & global hotel chain in leadership models in Japan. Journal of Yasuda Womens University, (46), 199-206. Web.

Social Media is a term that refers to Internet-based platforms that enhance information sharing (Kaplan & Haenlein, 2010). Social media increases communication amongst users of Internet by allowing the sharing of information, messages, videos, and even audio. Social Media has significance for both business and regular consumer of the Internet.

There are six types of social media and they include: Social Networking sites comprise MySpace and Facebook (Kaplan & Haenlein, 2010). These platforms enable users to create personal profiles, invite friends and even colleges to send emails, messages and any other information. These sites allow people to invite their friends and share information.

The other type of social media is Virtual game world. This is the type of social media that provides virtual setting in which consumers of media content interact with each other. Kaplan and Haenlein (2010) offer the highest degree of media richness and social presence. Examples include EverQuest and the cod-medieval.

Another social media is Virtual social world. This is the type of social media that allows users to interact in a virtual life that is comparable to real life. Examples of virtual social world include the Second Life application (Kaplan & Haenlein, 2010). This platform offers an opportunity for organizations in marketing.

Another type of social media used in social marketing is micro-blogging. Blogs are social platforms that focus on short updates. People who are connected to these sites are able to send an update about certain things including news (Kaplan & Haenlein, 2010).

The management of blogs is usually under one person, although they offer the likelihood of interaction with other people via commentaries or opinions. Examples of blogs are Justin.tv and Twitter.

An example of social media is content communities. These are social platforms that allow users to share media content or information. Content communities allow users to share media content in different forms, such as videos on YouTube and photos on Flickr.

Finally, Collaborative projects are other types of social media that enable users to create media content not only in a joint, but also simultaneously with numerous end-users (Kaplan & Haenlein, 2010). It allows users to add and even remove the media content with ease. These platforms contribute to the process of social media marketing.

Social media marketing is the process of using social media platforms to gain attention or website traffic from potential customers (Kaplan & Haenlein, 2010).

The content used on social media serves to attract the end users attention as well as to encourage consumers to share it with people of comparable interests, such as colleagues or friends. Normally, a companys message that emanates from thirty parties appeals to potential buyers as they seem more trusted than when it comes from the company directly.

The content that is posted on the social media is called brand posts. The popularity of brand is affected by the following factors. First, the position of the brand post on brand fan page. The place where an ad is placed on a brand fan page has a lot of effects as it may or my not increase attention paid to it.

Adverts placed on top of the fan page usually generate more traffic (De-Vries, Gensler, & Leeflang, 2012). Since, the position of the brand post on top of a website increases the chances of being seen, the number of the days the post is sustained increases the popularity of the brand and the company as many people are likely to see it.

Another aspect affecting the popularity of brand post is the content. The content of brand post means the information about the product or brand featured on brand fan page.

This affects the popularity of the brand or firm in that, on social media, people are easily attracted to informative ads (De-Vries, Gensler, & Leeflang, 2012). Brand posts or adverts that contain highly informative messages attract more potential clients or brand fans resulting in increased brand or firm popularity.

Another factor affecting the popularity of brand posts is interactivity. This is how parties exchange communication through a selected social media. It is a two-way process between concerned parties, such as organizations and their clients.

Since clients usually click on links, the brand post must contain the information that highly motivates people to react or to click on it (De-Vries, Gensler, & Leeflang, 2012). A higher level of interactivity generates more comments and likes. As such, it increases the popularity of the brand and firm.

Time factor is another factor affecting the popularity of brand posts. Time factor means the day of the week the brand post is put on the brand fan page. According to De-Vries, Gensler and Leeflang (2012), people use the Internet more on weekdays than weekends. Therefore, during the weekdays, the brand post is likely to attract more traffic thereby increasing the popularity of the brand and the firm.

Type of comments or opinions of brand fans affect the popularity of brand posts. Comments are simply the views aired by brand fans about a brand post. It may be neutral, negative or positive (De-Vries, Gensler, & Leeflang, 2012). The positive comments increase brand value thereby enhancing the appeal of a brand post to many readers.

The popularity of the brand post increases the number of people who want to know more about the brand or buy products hence increasing companys sales.

Social media effect on customer value equity and purchase intention. According to Kim and Ko (2012), value equity is the comprehensive evaluation of the brand utility by the end user, based on perceptions of the value derived from it. Value equity is influenced by social media in terms of convenience, price, and quality of the product.

Value equity influences directly brands and performance of firms by helping to build images that make clients identify that brand or company from others. It generates traffic as it increases brand awareness, companys ethics and positive attitude toward the brand. This increases companys sales leading to increased profits.

According to Kim and Ko (2012), purchase intention is the interest of consumers in certain product and the likelihood of purchasing that product. It is the attitude of consumers towards a certain brand.

Purchase intention is influenced by social media and affects directly brands and performance of firms. In case the attitude of consumers towards certain brands is positive, then they are likely to buy the product leading to the increase in companys sales and returns.

In conclusion, social media marketing is the best method of positioning companys offerings today. Through social media, the company is able to generate traffic that can easily be converted into sales and eventual profits as long as brand posts are saleable.

References

De-Vries, L., Gensler, S., & Leeflang, P. (2012). Popularity of Brand Posts on Brand Fan Pages: An Investigation of the Effects of Social Media Marketing. Journal of Interactive marketing, 26, 83-91.

Kaplan, A., & Haenlein, M. (2010). Users of the world, unite! The challenges and opportunities of Social Media. Business Horizons, 53, 5968.

Kim, A., & Ko, E. (2012). Do social media marketing activities enhance customer equity? An empirical study of luxury fashion brand. Journal of Business Research, 65, 14801486.

Introduction

As the company for analysis, Walmart has been selected, the largest retail organization providing retail and wholesale services. In addition to goods coming from suppliers, the company is also a manufacturer of its own products. As a product for evaluation, the Walmart-branded Equate pharmacy and beauty product line will be assessed from a microeconomic perspective. By using its technological base and raw materials, the organization sells these products, which, in turn, meet the interests of consumers and are in demand due to a different target audience and a wide assortment (Quality care begins here, 2020).

To manufacture Equate products, Walmart utilizes cosmetic compositions and pharmacological ingredients as the materials to help address diseases with various symptoms, including allergies, headaches, and other health problems (Quality care begins here, 2020). This activity requires costs that relate not only to production processes but also other conventions associated with obtaining the right to distribute pharmacological products to consumers.

The mix of inputs used to manufacture Equate products depends on specific factors. Firstly, licenses for the manufacture and sale of pharmacological goods are required. Secondly, maintaining partnerships with suppliers of raw materials is essential. Thirdly, the demand for the given products determines the share of production. Walmart benefits from economies of scale because the affordability and sustained consumer interest in Equate products keep the market for similar products high and provide for consistent sales (Quality care begins here, 2020). As the sources of economies of scale, one can highlight large sales volumes, active marketing practices, an advanced technological base, and the preparedness of management personnel. As a result, this category of goods is profitable for Walmart and allows the company to expand its sphere of influence.

Supply, Demand, and Market Equilibrium

Pharmacological and cosmetic products Equate under the brand of Walmart are the object of analysis. These goods will be evaluated from the perspectives of price, supply, and demand sensitivity. As the assessment and forecasting tools, the concepts of elasticity and market equilibrium will be applied to reveal how the products in question respond to specific changes. Equate manufacturing and distribution rely heavily on the current pricing policy, and in case of a shift, supply and demand will be sensitive.

Sensitivity of Supply and Demand to Pricing Changes

In case Walmarts management revises the current pricing policy for the distribution of Equate products, this will affect both demand and supply. According to Simonsen et al. (2016), in the pharmaceutical industry, price elasticity plays an essential role due to the stable demand for healthcare goods. However, one of the key features of Equate products is their affordable cost. If Walmart increases the price of these products, the demand will decrease since consumers will choose products of this type from nearby pharmacies. Consequently, the supply will increase as the company will have to sell more products. Thus, the price elasticity of supply or demand for the products in question is low.

Impacts of Non-Price Factors on the Demand

Non-price factors are those that affect the quantities of supply and demand without being tied to a specific cost of production. To assess the impact of such variables on demand for Equate products, one can provide examples of quality and diversity. As Benkovskis and Wörz (2018) note, these factors are frequent determinants of consumer interest. For Equate products, quality is an essential criterion that retains the target audience and ensures stable sales. Diversity is also a factor that allows expanding the sphere of influence and attracting more potential buyers.

Impacts of Non-Price Factors on the Supply

Individual non-price factors can influence the supply of Equate and determine the proportion of products supplied to the market. Wang et al. (2016) remark that these criteria largely affect the competitiveness and sustainability of a business. For Equate products, the level of technological base and tax rates can be presented as non-price factors. The more advanced is the equipment for the production of cosmetics and pharmacological goods, the higher is the speed of production and, consequently, the sales. The amount of taxes, in turn, determines the profit directly and can be an incentive to increase prices for brand products because the manufacturer needs to recoup the business. Therefore, these criteria can influence the supply indicators and explain specific changes.

Industry and Market Equilibrium

The market of Equate products is in demand due to not only a wide range of goods offered to consumers but also their importance. Since the brand manufacturers cosmetic and pharmacological health care products, different categories of the population are the target audience. In addition, while analyzing the status of Equate, one can note that the brand has an advantageous and competitive market position since its goods are manufactured and distributed by Walmart, the internationally renowned retailer. According to Lei (2015), in such business models where supply and demand are high, determining market equilibrium is a simple task. If no fluctuations in the supply and demand occur, this will keep the balance and help not use any third-party approaches or practices to coordinate certain aspects of the trade.

Effect of Changes in Supply and Demand on the Market Equilibrium

In case the demand for Equate products is higher than the supply, the cost of goods will increase without the intervention of third parties, and the balance will be maintained. At the same time, if the supply exceeds the demand, this will affect the price in the opposite direction. To maintain a strong competitive position, Walmart will need to keep the value of Equate products, which will satisfy a larger number of loyal customers. Accordingly, the price, as a dynamic component of trade, reacts to changes in supply and demand. Therefore, market equilibrium is such as long as both these factors are stable.

Potential Decisions Related to Supply and Demand

For Walmart to maintain a steady demand for Equate products, the company needs to monitor price fluctuations in the target market and control the indicators of consumer interest. As an additional measure, running active marketing campaigns may be considered because product promotion can help retain loyal clients and attract new customers. Partnerships with other companies specializing in the sale of cosmetic and pharmacological products are undesirable since Walmart will lose a share of profits. Thus, control and adequate marketing are effective mechanisms to maintain market equilibrium from a supply and demand perspective.

Conclusion

The pricing policy of Walmart in relation to Equate pricing is heavily influenced by its supply and demand features. Assessing market equilibrium and price elasticity allows identifying specific correlations between the parameters of supply and demand and making predictions regarding changes. To prevent the loss of the target audiences interest and maintain a sufficient share of the supply, market control and relevant promotion projects are the effective tools of influence.

Reference

Quality care begins here. (2020). Walmart. Web.

Benkovskis, K., & Wörz, J. (2018). What drives the market share changes? Price versus non-price factors. Structural Change and Economic Dynamics, 45, 9-29.

Lei, J. (2015). Market equilibrium and social welfare when considering different costs. International Journal of Economics Research, 6(2), 60-77.

Simonsen, M., Skipper, L., & Skipper, N. (2016). Price sensitivity of demand for prescription drugs: Exploiting a regression kink design. Journal of Applied Econometrics, 31(2), 320-337. 

Wang, H., Gurnani, H., & Erkoc, M. (2016). Entry deterrence of capacitated competition using price and nonprice strategies. Production and Operations Management, 25(4), 719-735. 

Introducton

Procter and gamble company began its operations in the year 1837 and immediately after the Second World War it globalized its operations. P&G as it has come to be known focuses on transforming slow-moving products into promising business ventures. The company has been said to concentrate on its core business through innovation, expanding penetration in developing countries, and restructuring its existing business.

P&G is a dominant household name as it deals with household products and has produced distinguished brands like Pampers and SK-II which is cosmetic-related. SK-II will be the case under scrutiny in this report.

According to Duncan (1995), cultural diversity and geographical differences have dominated the debate on the globalization of standardized products. Other factors that also affect the success of standardized advertising, including such issues as regulation, product use patterns, socio-economic levels of development, education, language differences, and organizational structures.

The objective of this paper is to review the SK-II case which is a brand of P&G in terms of the main challenges and opportunities it encountered. To do this, we will analyze the factors underlying the current performance and the likely effects of future developments in the industry. This is regarding the companys bid to expand its operations by introducing SK-II as a global product into China and Europe and after the implementation of the organization 2005 strategy in 1999 as the company operated with a 5-year plan.

Statement of the problem

It is important to note that P&G was experiencing serious problems in the early 80s and their entry into the Japanese market had devastating effects as it was a failure (Bartlett 2004). The first step is therefore to identify the problems that P&G faced with Japan and the wrong steps that they undertook and try to ensure that introduction of the SK-II brand as a global product into the Chinese market and the European market can be a success. We have to determine whether the brand has the potential of becoming a product that can be sold globally. We also have to consider and analyze the effect of the Organization 2005 restructuring program, also known as O2005, which would bring about cultural and organizational changes that would affect the SK-II brand globalization process.

We also have to understand the markets into which the product is to be launched into and determine how lucrative it will be. In this case, the markets are China and Europe which we shall look into in-depth later on in this paper. The pros and cons of expanding into either China or Europe will be dwelt with to be able to give recommendations on the preferred market. The strategies they intend to use for expansion are also important issues to deliberate and will be tackled in this paper.

Product sector 

P&G is a company that is in the household products industry. It is engaged in the production of all sorts of home products like beauty products, baby care, pet health, foods, and personal care among others. This paper will, however, major on the SK-II brand in the skincare line of products although the company also deals in other household and food brands, for example, pampers which is a baby product, and rejoice brand which is a hair product.

Does SK-II Have Global Potential?

In this section, we are going to look at the strengths and weaknesses of the SK-II brand to determine whether it can or cannot meet the requirements of becoming a global product. One of the advantages of this brand is that it is of high quality and this goes hand in hand with being a product with a high-profit margin. The product also enjoys a good brand image in Japan and there is a huge market base for the product worldwide. The successful launch of the product in Taiwan and Hong Kong also adds to the credibility of the SK-II brand.

However, the SK-II brand name seems to be a household name only in Japan as it is not well known outside of Japan. This is a setback because it takes a lot of resources in advertising and promotion to create awareness of the product. Finally, it was said to be very difficult to sell the idea of how valuable the product is to the western community. After reviewing the arguments for and against the case, it is clear that the SK-II brand does have the potential to become a global product.

Market analysis (SWOT)

In this section, we will take a close look at the current market of the SK-II brand critically which is Japan, and then proceed to dissect the Chinese and European market to establish the probability of the brand becoming a success in the latter markets and as a global product. Since we are using the SWOT analysis, we shall be looking at the strengths, weaknesses, opportunities, and threats that each market has to offer.

Japan

SK-II brand has the advantage of being a high-quality product and the previous failure means that the company has learned from its mistakes and will improve on them. Japan has a very large population and a stable economic base therefore it provides a very huge market and growth potential to industries. Japan also has a history of sophistication and a variety of life standards meaning they are keen on fashion and the latest technology and invention and therefore creating a desirable business environment. Japan has an independent economy and is said to be among the leading consumers of beauty products and since most of the population is wealthy it is, therefore, a lucrative place for conducting business.

The country has a very competitive beauty and skincare industry but SK-II was launched triumphantly into the market and still has an opportunity for further growth of the brands consumer base. The launch of SK-II was a huge success in Japan and still has a huge potential for expansion. The Japanese government has however been accused of being uncooperative in the enforcement of trademark and patent laws that would prevent duplication and counterfeiting of their products but they managed all the same.

The SK-II sales in the year 1999 were more than $150 million in Japan. The retail sales in skincare products were estimated to be $6,869 million and the growth rate of two years was 6%. There was also the potential of sales doubling over the next 6 to 7 years.

The Marketing Mix

The Japanese market called for innovation and inventiveness of products. As for the pricing strategy, premium pricing was used and it proved to be efficient. They also availed a procedure involving 8 steps on the use of the product as well as providing solutions for individual skin problems by specialists. Finally, there was the introduction of skin whitening and anti-aging products.

As for the place, SK-II brands were available in department store counters while promotion entailed reviews of their products in magazines and having trained counselors in stores for customer care services.

China is one of the countries that have the largest population in the world. This creates an opportunity for P&G because it means that there is a huge untapped consumer base. It is said to be the second-largest market of beauty products in the world; with the prestige cosmetics segment growing at 30 to 40% per year (Bartlett 2004). The huge population also means that the cost of labor is minimal as there is the availability of cheap labor. It should be profitable to use the labor-intensive approach. To make it in the Chinese market High-quality products should be launched to ensure product success in the market. The presence of wealthy customers in the population is also an added advantage to the company. They could decide to major with the elite section of the wealthy women who are in it for quality and dont mind paying extra for the same Bartlett (2007). The target population covers a large area and is widespread hence growth opportunities are present.

On the other hand, the Chinese government tends to protect their local industries from foreign competitors and this would pose a threat to the SK-ii brand. The competitors in china would be Kao and Lion who have a better position in the market because they are familiar with the market better than P&G.

The company estimated that it would incur a substantial amount of losses initially for the first three years before it could begin making profits. According to the P&G annual report (1999), the initial investments would lead to estimated losses of roughly 10% of the sales in the first three years of operation after which a break-even point would be realized. The retail sales in skincare products were estimated to be $I, 022 million and a two-year growth rate of 28% in 1999.

Marketing Mix

As for the Chinese market, the pricing strategy is the same as Japans which is the premium pricing strategy. However, the price should be lower than that in Japan. As for promotion, they should educate the consumer and advertise the product using Chinese models and in beauty magazines. They should also offer superior store service with trained counselors. They should place their product on counters in departmental stores.

Europe

In the European market, SK-II will have the advantage of being a high-quality product. This means that it will capture the segment of consumers who are after quality who are the vast majority. Unfortunately, that sums it up for the strengths of the product. As for opportunities, since P&G is a company that has vast resources, it will be easy for them to create a channel of distribution for the brand and be able to reach the untapped market by creating a large network that reaches out to the consumer.

Various threats are expected in this market, for example, the existence of already established competitors makes it very difficult for the brand to be able to penetrate the European market which is already crowded. The consumers are also multi-cultural and a bit rigid therefore will prove difficult to convince them to switch to the SK-II brand. There is also the high operation cost like the cost of advertising which is abnormally high but is vital if the product is to be launched into a new market to educate people of the existence of the product and promote the brand to sway consumers towards it.

By entering the European market, P&G hoped to achieve $10 million after four years of operating in the area and out of this absorb $1 million  $20 million annually for the entire period as start-up capital investment. In the year 1999, the retail sales in skincare were $1,052 million and a growth rate of 17 %. ( P&G Annual Report 1999)

Marketing Mix

The European market requires highly innovative products and they should offer solutions for individual skincare problems. The pricing strategy is also the premium pricing strategy and should be placed in department store counters and pharmacies. Finally, for promotion, there should be superior in-store training, marketing the product online, and offering free samples.

Organization 2005

In the late 1990s, P&G undertook a major restructuring of their operations that was named Organization 2005 or O-2005. The restructuring had the effect of further centralizing an organization already more centralized than its peers (Neff, 1998). The O-2005 was introduced by Jager in 1999 which brought various changes in the companys organizational structure. The strategy involved restructuring the company from geographical lines to product-based. It also proposed speeded up production and innovation and finally the elimination of bureaucracy in the company. This restructuring was surely bound to affect the operations of the company as well as the globalization of the SK-II brand.

With the new strategy, Procter & Gamble grouped its businesses into global business units (GBUs) (Dyer, Dalzell & Olegario, 2004, pp. 294-5), and on the other hand, arranged its global business services into geographically based market development organizations (MDOs) (pp. 294-5). The GBUs were to manage product and brand development and manufacturing. The MDOs on the other hand handled the marketing strategies for local implementation.

However, the company encountered difficulties in the implementation of O-2005 until Lafley took over in 2000 as the CEO and strived to eliminate the setbacks that were rocking the implementation of the strategy.

Effect of 0-2005 on Globalization of SK-II

In this section, we shall discuss the impact that the 0-2005 strategy will have on SK-II as a global product. One of the strong points is that there is an increased budget allocation and therefore there will be no major financial constraints. The strategy also incorporated incentives for workers and this, in turn, improves their performance. There were a lot of bureaucracies in the company and 0-2005 strived to eliminate them to create a better business environment. This was in line with the improvement in accountability. Finally, the culture of stretch, innovation, and speed was of great help in the globalization of the product.

On the other hand, 0-2005 presented some challenges for example it led to budgetary pressures on the company. It was also faced with the challenges of not understanding the trade differences between markets and the competition they were to face. All in all, the 0-2005 strategy after reviewing its strengths and weaknesses supports the globalization of SK-II.

SK-II Product Strategy

The P&G company strategy placed the global business units in charge of the product development. They were in control of manufacturing and marketing and would therefore need to have a strategy for rolling out the product. They had to create an image for the product that will be consistent. They also needed to consider cost reduction and to achieve this had to consider economies of scale.

The MDOs that handled local implementation needed to cater to the requirements of the customers in different markets and countries and familiarize themselves with the stages of the life cycle of the product.

Conclusion

The analysis raises a couple of issues that should be clearly understood. First is the fact that the SK-II brand is a high-quality product, it uses superior technology and provides in-store service and all these factors qualify the product as having global potential. It means with no doubt that the SK-II brand can be transformed into a global product. P&Gs growth would therefore depend on its ability to develop new products and roll them out rapidly worldwide.

The increase in the budget of the R&D operations for technological purposes and the support of the O-2005 organizational structure were helpful to the rolling out of the SK-II brand. On the issue as to whether the O-2005 strategy is effective and whether it will deliver results. The options for this issue are acknowledging the fact that restructuring is not expected to deliver results instantly and it takes time for it to work.

After analyzing the markets, Japan, China, and Europe are very promising markets although Japan is the most attractive followed by China and finally Europe.

Recommendations

There are several recommendations to be made regarding the globalization of the SK-II brand. The first one is that P&G should restructure the company into a global product competitor and continue implementing the O2005 strategy. Better implementation of the strategy is required though. O2005 is effective and should therefore not be done away with.

Secondly, the strategy that P&G should use in the market entry is determined by the analysis of the markets. According to Lindstrom (2006), the global-only campaign does not exist. It should therefore first penetrate the Japanese market and then start market development in China than Europe gradually.

Finally, when it comes to the product strategy, the company should strive to ensure that it remains the predecessor when it comes to technological know-how, inventiveness, and innovation. It should therefore apply the standardized product development strategy which implies maintaining quality but at the same time keeping it simple. It is therefore important that the company P&G considers globalizing the SK-II brand as it has the potential of becoming a market leader.

References

Bartlett, Christopher A., Ghoshal, and Birkinshaw, Transnational Management, Text, Cases and Readings in Cross-Border Management. Fourth Edition, McGraw-Hill Irwin, 2004.

Duncan, T., & Ramaprasad, J. Standardized multinational advertising: The influencing factors. Journal of Advertising, XXIV (3), 55-68. 1995.

Dyer, D., Dalzell, F., & Olegario, R. Rising tide: Lessons from 165 years of brand building at Procter & Gamble. Boston, MA: Harvard Business School Press. 2004.

Lindstrom, M. (2006). As world citizens, brands too must have a stand. Media, 20. Liu, C. 2003.

Neff, J. P&G revamp to create global category groups: New structure said to be faster, less Complex for marketer. Advertising Age, 2.1998.

P&G Annual Report. 2009.

P&G Expansion. 2009. Web.

P&G Japan. 2009.

Research for Procter & Gamble in Greater China. 2009.

Untitled. 2009.

Introduction

Pauls is one of the leading milk brands in the Australian market. Presently, it remains an acceptable product because it delivers numerous benefits to the consumer. In terms of background, the brand name emerged in 1923 when a firm by the same name introduced it into the market. Other successful companies in this country would go ahead to acquire this parent organization. Such organizations chose to retain the brand name, including Queensland United Foods Limited and Pauls Limited. The Italian organization by the name Parmalat acquired Pauls Limited in 1998. This company would later change its name to become Parmalat Australia Limited. Today, this leading company operates under this new name: Lactalis Australia Pty Limited (Reeves 2021). In terms of market size, this organization commands a bigger market share of around 14.3 percent (Reeves 2021). The existence of proper marketing strategies continues to make this organization successful. Consequently, Pauls has remains one of the top three famous milk brands in Australia.

Lactalis Australia Pty Limited has a number of products or brand subcategories for Pauls. Some of the leading ones include Pauls Full Cream Milk, Pauls Skinny Milk, and Pauls Trim (Reeves 2021, p. 30). Such product lines remain essential and have continued to intended organizational aims. To record positive outcomes, Lactalis Australia Pty Limited has been relying on an effective marketing mix for this key brand. For instance, the company relied on premium pricing (P1) for Pauls depending on the existing regulations and competition in the market. Such an approach is presently informed by the competitive edge and the increasing level of demand for the brand. In terms of place (P2), the brand and all associated products are available in different regions across Australia. Proper advertising, distribution, and marketing processes support this attribute. Proper promotional (P3) efforts are considered to sensitize more customers and improve the recorded sales volumes.

Finally, the organization pursues the product (P3) attribute by taking into consideration the core product, actual product, and augmented product. In terms of core product, Lactalis Australia ensures that Pauls brand is creamy while delivering low fat content. This unique aspect makes it admirable in the market. The actual product is designed in such a way that the package is appealing while promoting sustainability. Pauls milk is also clean, safe, and healthy for the consumer. The augmented product concept is pursued by ensuring that there are proper mechanisms for advertising and engaging possible customers (Zhang, Hughes and Grafenauer 2020). Proper marketing and distribution approaches also ensure that such clients can access and purchase Pauls milk anywhere in Australia.

Micro and Macro Environmental Factors

Macro Environment

Lactalis Australia Pty partners with a number of partners to acquire raw materials and eventually market the final products to the targeted customers. Coles is a leading supermarket in this country. It operates around 800 stores in most of the eading cities in Australia. This attribute makes it a strategic partner for supporting the Pauls brand. It is one of the key intermediaries that make it possible for more buyers to choose a wide range of milk products from this company. This player remains critical since the pursued business model support Lactalis Australias goals (Reeves 2021). The supermarket engages in desirable marketing apprcahes that maximize the visibility of the Pauls brand. This role is essential and continues to sensitize and encourage more people to consider such products.

Should the existing relationship between these two partners breakdown, chnces are high that Lactalis Australia might lose some of its sales and profits. The company might also be compelled to identify other supermarkets and wholesalers to ensure that it maintains the current volume of sales. Based on such aspects, this company can continue to liaise with this player to maximize the current opportunities (Atabek and Atabek 2019). Specifically, it can capitalize on the current number of stores to improve the place attribute of the 4P marketing mix. The organization can also formulate new arrangements to ensure that Coles includes most of Pauls sub-products in its advertising channels and websites.

Macro Environment

Several factors in the macro environment will continue to impact the overall performance of many companies in the Australian milk industry. One of them would be that of the natural environment. The primary risks include the changes in climatic conditions, the need for promoting sustainability, and regulations focusing on green reporting. Some stakeholders are concerned about the scarcity and use of water resources in this industry. Government regulations might compel more companies to improve their water recycling efforts and strategies for improving environmental sustainability (Reeves 2021). The demand for renewable energy sources could also impact this companys future performance. These issues present unique risks and challenges for the continued profitability of Lactalis Australia (Atabek and Atabek 2019). However, the consideration of these key regulatory requirements and the desire for an ethical business model could eventually make the company more attractive.

Positioning Map

Pauls brand has become a domestic name in Australia because it delivers the much needed nutrients to the consumer. The manufacturer ensures that the sugar content levels in its sub-categories are extremely low. It has also gone further to produce lactose free sub-brands to meet the demands of the customers. The premium pricing approach ensures that more people identify the brand based on its key qualities (Zhang, Hughes and Grafenauer 2020). Based on such attributes, Pauls brand has been competing directly with other milk products in the country. Some of the key competitors include Dairy Farmers, Norco, ALDI Farmdale, and Woolworths (see Fig. 1). With the increasing level of rivalry, the company has gone further to reduce the level of milk fat in its creamy products. The nature of these attributes and the presented map show conclusively that Pauls brand is a major player and competitor in the Australian market.

Ideal Persona

Pauls brand has the potential to continue performing excellently in the Australian market. The company needs to be aware of the possible attributes and personal characteristics that can help support the intended marketing strategy. A detailed analysis of such an ideal consumer can ensure that the efforts put in place are targeted in nature and capable of delivering desirable outcomes (Zhang, Hughes and Grafenauer 2020). The consideration of the individuals current and future expectations will inform the best strategy and eventually make this brand and the included sub-categories successful in the Australian market. The key attributes of the ideal persona for Pauls are presented below.

Demographics

Target customers for Pauls include individuals aged 18 and 60 years of age. The demand for this product remains higher for people who are around 25 and 35 years of age (Zhang, Hughes and Grafenauer 2020). In terms of gender, both males and females are capable of supporting this brand. Those who have higher income levels would also form the primary target for this product. This trend is supported by the availability of disposable money. Those with normal or below average earnings would be relying on pasteurized milk for home consumption. The lifecycle stage of possible customers is critical for this attribute. Specifically, individuals who are young would consume the product since their parents are able to afford it. Those above the age of 50 might be unwilling to consume processed products in favor of natural food products. People in a wide range of occupations would form a good market for Pauls brand. Urban dwellers would be able to access supermarkets and other outlets associated with this product.

Motivations

The ideal customer would be motivated to consume this product for relaxation and acquisition of the relevant minerals from milk products. Those who have small children would also be willing to surprise them with creamy milk (Atabek and Atabek 2019). Some might decide to reduce the intake of Pauls products due to various life goals, such as reducing weight. The consideration of these choices related to the selected product could dictate the overall purchasing decision (Atabek and Atabek 2019). Similarly, the product is able to solve the absence of adequate milk products in the Australian market. Individuals will prefer the use of the product to supplement their nutrients in the body.

Frustrations

Over the years, most of the companies in the creamy milk industry have failed to over a wide range of products that deliver low fat or sugar levels. More customers are aware of this key issue as they want to overcome the challenges of overweight and obesity. The past has been characterized by the absence of premium products with low fat (Zhang, Hughes and Grafenauer 2020). Consequently, Pauls remains a powerful brand that promises to solve this problem and make it easier for more people to record positive health outcomes.

The Consumer Decision Making Process (CDMP) provides a detailed path that explores the strategies customer adopt before deciding to acquire a given product. For instance, some of these possible clients would be keen to purchase this product since it is healthy and has reduced sugar levels. The presence of Pauls in the Australian market has made it a domestic brand that many people want to associate with (Atabek and Atabek 2019). The company has been on the frontline to implement desirable approaches for continuous product improvement. This strategy has encouraged more customers to admire this brand since it delivers positive health benefits to the buyer. Lactalis Australia is, therefore, pursuing a social development cause by helping people fight obesity and diabetes.

Conclusion

Lactalis Australia Pty Limited is a successful company in the Australian creamy milk industry. The organizations history makes it a leading player in the delivery of high-quality products. The consideration of the above persona and the concept of continuous improvement have resulted in an admirable brand in the market. Pauls success is attributable to the producers ability to focus on the attributes of the persona described above. Such observations show conclusively that Lactalis Australia has increased chances of becoming more profitable in the future.

Bibliography

Atabek, Gülseren S., and Ümit Atabek. 2019. Consumer Perceptions towards Dairy Products: Effects of Mass Media. Online Journal of Communication and Media Technologies 9 (2): e201908.

Reeves, Matthew. 2021. Milk and Cream Processing in Australia. Melbourne, IBISWorld Pty Ltd.

Zhang, Yianna Y., Jaimee Hughes and Sara Grafenauer. 2020. Got Mylk? The Emerging Role of Australian Plant-Based Milk Alternatives as A Cows Milk Substitute. Nutrients 12 (5): 1254-1271.

Introduction

The marketing mix is the theoretical basis on which all promotion methods are built. The two most basic tasks of the marketing mix are to increase the perceived value of the product in order to provide the company with a long-term perspective and profit (Keller & Brexendorf, 2017). The strategy allows you to create a product that meets the needs of customers at an adequate cost but at the same time with financial benefits for the business. Billabong is an Australian clothing brand that utilizes marketing mix techniques to function successfully in the market (About us, n. d.). This part will review how Billabong implements this strategy to increase its market share.

Product Strategy

The company sells items divided into five broad categories, which is quite uncomfortable as it can be pretty challenging to find a specific item in an online store. What is more, the manufacturer has a wide range of clothes starting from swimming suits to hats offering a unique opportunity of choosing the perfect size, color, and style. Additionally, the products are considered high-quality; hence, the customers are ready to pay more for the quality (About us, n. d.). Indeed, the average price for a swimming suit varies from $40 to $100 (Russell et al., 2021). Billabong mainly targets people who lead an active lifestyle; thus, it aims to create clothes, shoes, and outdoor equipment for a reasonable price.

Price Strategy

Primarily, to effectively operate in the industry and have a competitive advantage, a company should develop an elaborate pricing strategy. The chosen company has had ups and downs due to the insufficiently developed pricing orientation, yet, in recent decades, it has managed to sustain stability (The rise and fall of Billabong, 2021). The current pricing strategy follows a simple rule  to set the prices at the competitors level so as to stay viable in the market. It is easy to obtain necessary data on Billabongs rivals and compare the prices. In addition, the manufacturer uses bundle pricing, which means it sells several items in a single pack at a lower price. Yet Billabong does not offer many discounts making it less appealing to the customer. Billabong also has a fixed price on its goods, making them available to retail or other buyers who can add up to the current price. Finally, the brand sends goods online, and charges for delivery which is a regular practice for such businesses since the expenses on logistics are quite high.

Distribution Strategy

Billabong uses two channels for distributing its items: wholesalers and a website. The company prefers selling its clothing, shoes, and outdoor equipment through wholesalers because it helps them get more profit. Only throughout the U.S., the manufacturer owns more than 500 retailers (Russell et al., 2021). What is more, it offers customers an opportunity to purchase goods online and get everything delivered to ones doorstep. An omnichannel distribution allows Billabong to operate efficiently both in stores and online (Keller & Brexendorf, 2017). Moreover, due to the well-developed system of online sales, the company faces traffic on its websites. Due to online sales popularity, Billabong has partnered with numerous delivery services to send parcels both to clients and retailers. Ultimately, the company owns more than 500 suppliers who provide raw materials (Russell et al., 2021). In general, the distribution strategy is effective in terms of productive operations between stores, websites, and logistics partners.

Promotion Strategy

Billabong utilized all traditional and modern methods of promoting its products, from advertising on TV to purchasing ads from Internet influencers. Such a wide variety of channels is beneficial since this approach helps reach large audiences. Even though advertisement on TV or radio is expensive, it remains effective. Meanwhile, social media do not require many investments yet demand expenses when it comes to collaborating with bloggers or other Internet personalia. Its main net channels are YouTube, Facebook, Twitter, and Instagram (Russell et al., 2021). Recently, a South African surfer Tanika Hoffman participated in Billabongs marketing project aimed at popularizing surfing and an active lifestyle in general. Around the year, Billabong takes part in trade shows and exhibitions to promote its products and boost sales.

Organizational Allocation of Resources

Billabong invests in the development of corporate social responsibility (CSR) as it aims to establish itself as a sustainable brand. Hence, it makes contributions to social, educational, health, and sport-associated products aimed at the improvement of peoples lifestyles and environment (Russell et al., 2021). In addition, the company spends decent sums of money on promotion as social media influencers raise the prices of advertising. Finally, the manufacturer invests in the development of ecologically clean products to ensure the alignment with its mission and goals.

Conclusion

In summary, Billabong remains one of the major clothing manufacturers in the market due to its competitive advantages. Its primary benefit is the top-quality products; hence, the customers are ready to pay more to purchase the companys items. Despite the fact that the pricing strategy does not let a manufacturer take the top position in the industry, it still allows for attracting new customers. Billabong has quite a productive distribution strategy incorporating in-store and online sales. Finally, its promotion is also efficient due to the comprehensive coverage of traditional and modern communication channels.

References

About us. (n. d.) Billabong. Web.

Keller, K. L., & Brexendorf, T. O. (2017). Measuring brand equity. Handbuch Markenführung.

Russell, S., Ens, E., & Rangers, N. Y. (2021). Now its not a billabong: Eco-cultural assessment of billabong condition in remote northern Australia. Marine and Freshwater Research, 72(7), 925-941. Web.

The rise and fall of Billabong. (2021). Startup Sapience. Web.

Introduction

Franchising is a common practice in the world of business. Franchising makes it easier for investors to establish new distribution outlets and stores in foreign markets (Hoffman 5). The success of investors depends on the strategies and goals of their franchisees. Many local franchises are currently expanding their businesses in order to realize their potentials.

These franchises target the best markets across the world. Many local franchises have used the best ideas and strategies in order to become successful universal brands. Many companies are producing quality products and services that can fulfill the needs of foreign consumers. This essay examines how local businesses and franchises are becoming global brands.

International Businesses and Brands: The Case of 7-Eleven

Many local franchises are working hard to become international brands. The decision to introduce a local brand in an international market is not easy. Entrepreneurs must produce the best brands for every targeted population. It is also appropriate for marketers to maintain brand uniqueness and consistency (Spandorf 5).

Franchises must possess certain resources and managerial practices in order to achieve their goals (Hoffman 6). These franchises must have adequate finances and human resources (Spandorf 7). These strengths will ensure every foreign investment is successful. Franchising is also necessary whenever an organization wants to realize its business goals. Entrepreneurs should consider the best theories and business ideas in order to succeed.

Businesspeople use the best franchise models (FMs) to achieve their goals. These models ensure every business gives up its strategy to a local partner. This practice also produces new challenges that can affect performance (Spandorf 5). Many local franchises use effective branding strategies or mixes in order to realize their potentials. The concept of local adaptation is also necessary towards promoting business performance. The approach ensures every local franchise succeeds in the global market. The practice has made it easier for many businesses to expand their operations internationally.

7-Eleven is a leading franchising company. The American firm has embraced the best business strategies and ideas in order to realize its objectives. Many franchises such as 7-Eleven have embraced the best business models in order to achieve their objectives (Spandorf 5).

7-Eleven combines effective strategies and practices to achieve its goals. The firm thinks globally and acts locally depending on its consumers (Daley 3). Every international brand should identify a specific local culture. The practice calls for new ideas and strategies in order to improve performance (Jonsson 1092). International entrepreneurs must ensure their employees offer the best services and products to their consumers.

The absence of a proper branding or expansion strategy can affect the success of an international business. Many unsuccessful companies produce unappealing or unacceptable products. They also fail to consider the tastes and expectations of their local consumers. This malpractice has made many services and products unsuccessful in the international market (Spandorf 3). Local franchises should consider these aspects in order to address the needs of their customers. Local franchises should use the best strategies whenever expanding their operations. The approach will ensure every franchise becomes a profitable international brand.

7-Eleven offers the best stores across the United States. The company uses similar stores in many countries across the globe. The approach has made 7-Eleven an international brand. This company is one of the largest franchisors and operators in the world. It licenses convenient stores to many small businesses in different countries (Jonsson 1083).

The company operates in many countries such as Japan, Indonesia, China, Hong Kong, Singapore, Thailand, Canada, and Malaysia. The company operates over 50,000 convenient stores in these nations. The case study of 7-Eleven explains why companies should embrace the best franchise models (FMs) in order to realize their potentials (Jonsson 1086).

7-Eleven uses the best business strategies and models. The company has expanded its products and services depending on the expectations of its global consumers. The company has increased its presence in many countries. The firms major products include coffee, gasoline, sandwiches, beverages, and dairy products (Spandorf 6). These products address the socio-cultural needs of many consumers in every targeted market. 7-Eleven uses an effective franchise model in Indonesia.

The company offers free internet access and quality food materials in Indonesia (Daley 3). The company uses several strengths in order to succeed. Many Indonesians love to socialize (Spandorf 5). The company offers free internet access in order to encourage this socio-cultural practice. This strategy has continued to attract more customers in Indonesia. The practice has made 7-Eleven a profitable company.

The company selects the best locations and populations depending on its business objectives. The company opens its stores every day and night. This practice encourages more consumers to hang out and use the companys free internet (Hoffman 18). Entrepreneurs can embrace the use of social media networks (Spandorf 3).

Entrepreneurs can use these social networks to exchange their skills, ideas, and concepts. 7-Eleven uses different social networks to inform its customers about every new product. Some of these social networks include Twitter.com, Pinterest.com, YouTube, and Facebook.com. The famous 7-Eleven application makes it easier for customers to get the best services and support.

7-Eleven has succeeded because of its effective franchise model. The company focuses on the changing needs of its local consumers. The company also gets new ideas from its local business partners. Local entrepreneurs should analyze the socio-cultural demands of their potential consumers.

A successful business must consider such demands and expectations in order to achieve its objectives. 7-Eleven also offers localized corporate structures and materials in many countries. The company trains and mentors its workers in order to offer quality services to its local customers (Spandorf 5). Managers can consider the best ideas and strategies in order to have powerful brand identities.

Some upcoming markets such as China, India, Brazil, South Africa, and Mexico continue to support international business growth. Companies should have adequate financial resources and ideas whenever planning to invest in foreign countries (Spandorf 6). Successful franchises analyze the expectations and cultural tastes of their potential consumers. The practice will play a major role towards establishing successful international brands (Hoffman 11).

Businesses can use the best franchise models to introduce new products and services in new markets. 7-Eleven has introduced quality sandwiches in India. Businesses should maintain the best ethical standards and moral practices (Daley 5). The company should support their franchisees in order to achieve the targeted goals.

Entrepreneurs can invest in new markets depending on the targeted goals and cultural practices (Daley 4). Businesses should use their franchise models to examine the political, economic, environmental, technological aspects that might affect their operations. International franchises should also invest in stable countries. The political climate of a country can either discourage or promote international business relations (Hoffman 6). A stable country will attract many companies and foreign investors.

Businesspeople can analyze the economic position of every potential market. Technological factors are also relevant whenever planning to invest in a foreign nation. Successful international brands such as McDonalds and 7-Eleven have always analyzed these factors before investing in new markets. 7-Eleven encourages its business partners to embrace the best ideas and strategies in order to attract more consumers (Hoffman 6). The company also offers the best managerial support to its business partners. The approach has made 7-Eleven a successful organization. 7-Eleven has become a universal brand that addresses the needs of its customers.

Conclusion

The case study of 7-Eleven explains how local franchises can become successful international brands. 7-Eleven is a leading international brand. The company embraces the best ideas and entrepreneurial concepts in order to emerge successful. The decision to expand a business requires much effort and dedication. The companys managers and leaders embrace the best models in order to achieve every business objective.

The companys franchise model encourages 7-Eleven to select the best partners. Such partners should support the changing needs of their local customers. Every firm can create the best business strategy depending on its objectives. A localized approach will ensure every company addresses the expectations of its consumers. 7-Eleven also uses a proper corporate support in order to achieve its goals. This discussion explains how local franchises can become successful international brands (Spandorf 9). Many companies have used the above franchise model in order to achieve their business goals.

Works Cited

Daley, Jason 2014, How Local Franchises Are Becoming International Brands. PDF file.

Hoffman, Richard 2014, Business Climate and International Franchise Expansion. PDF file.

Jonsson, Anna 2011, International expansion through flexible replication: Learning from the internationalization experience of IKEA. PDF file.

Spandorf, Rachelle 2012, Structuring Licenses to Avoid the Inadvertent Franchise. PDF file.

Growth of store branding in the US over 25 years

Based on recent reports, private label products are vital to the growth of retailers. In the past, private label brands competed with the national brands using the price-value proposition. With the tag of generic product offerings, they often attracted lower prices than the national brands. Moreover, they instilled less inspiration, trust, and confidence in consumers in the earlier monopolistic market. In spite of all these revelations, private label brands grew in the US by offering low priced options to other consumers. The scenario made retailers to push continuously for more generic product offerings into diverse classifications of marketplace since private label products signified high margins and assure profitability regardless of the marketing initiatives (Fernie, Moore, & Fernie, 2003). Overtime, store branding in the US has become more sophisticated with retailers in private label products developing and vending their own goods.

The changes in market dominance made national brands to compete vigorously for the same customer with the store brands. Notably, the earlier viewed monopolistic market filled with trust and confidence for national brands changed gradually to a liberal one. Store brands could easily employ price reduction strategies to tap into the consumer market share of the national brands. On the other hand, the national brand counterparts used product differentiation strategies to remain relevant in the constantly changing consumer market; they did this in collaboration with right retail partners (Floor, 2006). The US market, just like the European market, has witnessed massive competition in which store brands are taking on their national counterparts, and the latter fighting back using different strategies. The desire to boost profits and margin has pushed retailers in the US market to design and implement complex and aggressive strategies. In addition, they want to build strong brand equities, seal the breaks that producers are not satisfying, as well as remain relevant in the competitive market.

The approaches have seen consumers shift their loyalty to acquire products that meet their needs; the consumers are opening their doors to retailers. According to the GfK Roper Reports, over 80% Americans have knowledgeably bought a private brand, and approximately half of the 80%are purchasing more private products nowadays than they did in the past. This reputable organization has been carrying out studies on buyer purchasing behaviors and attitudes since 1973. Therefore, it has unquestionable data. In one of the reports, consumers agreed that they used to go for name brands despite the high prices. However, the trend has since changed with 62% revealing that they bought store brands during their last shopping outings in the month of December 2008 (Landor Associates, 2011). In a research ordered by the PLMA in 2009, GfK found out that even with the improvement of the economy, 9 out of 10 US residents would not stop purchasing private brands. This research together with another one commissioned by Future BuySIM showed how national brands are facing fierce competition from their private counterparts. Even though a comparison of price and value gives the national brands a competitive edge over the store brands, 60% of American consumers agreed that store products are better than the national brands. Moreover, 40% of those interviewed by GfK admitted that they were unable to detect the difference between national brands and private brands (Mullick-Kanwar, 2012). Of those interviewed, 39% agreed that products from private brands were more interesting than national brands given their unique products in the market.

An analysis through a consumer need-state lens reveals how store branding has evolved overtime in the US. Consumers agreed that private brands provide unique items, hence satisfying the diverse tastes and preferences of the expansive American population (Silverstein, 2012). These local outlets also have correct timing in releasing their products to the market, giving them a great competitive edge over their national counterparts. As Blessing (2010) notes, store branding was the starting point for private brands in the US. Their evolution has threatened the monopolistic position of the national brands in the market threatened. Markedly, their entry pricing has been the major strategy in infiltrating the monopolistic market. Taking an example of Presidents Choice cookies, consumers agreed that the product taste better than other dominant national brands. This report marked the drastic change for private brands to diversify their strategies in order to capture the attention of the market. The table below by Blessing (2010) shows the evolution of some private brands.

The graphs below illustrate how the store brands are gaining entry into the market with consumers changing their preferences, as well as the changing margins in local online spending. From the graphs, quality of brands appeared significantly with consumers admitting that the quality of most store brands matches that of national brands.

 

Why are so many retailers active in this type of marketing?

The evolution in the US market is taking the shape similar to what had occurred in the UK. Retailers are evolving to a point of acting as manufacturers. They are highly active in the market to get consumers feedback and preferences. In responding to the needs of consumers, private brands tailor products that meet consumers needs. With the analysis of the situation in the UK, retailers in the US are relying on the continuous evolution that is taking place in the market, and the trend is expected to continue into the future (Schneide, 2002). Several retailers have noted changes like consumers desire for value, distinct market segregation, as well as consumers openness to sound-completed brands.

Consumers in todays economy are dynamic; they remain loyal only to outlets that consider their needs when manufacturing products. The desire for value plays a critical role in making consumers change their preferences in buying products. The increasing trend has seen consumers prefer private brands to national brands. Therefore, retailers are capitalizing on the increasing consumer base. For example, Hale (2014a) noted that by the end of 2013, out of the $643 billion retails sales, the US retail landscape had reached $112 billion. Since the country is still in the path of economic recovery due to the effects of the 2007 Economic Recession, the value is still below market expectation. With the high number of consumers preferring private brands, retailers are aiming at marketing their products using this option in order to gain consumer loyalty. Notably, between 2009 and 2013, sales in the private brands registered an increase of one share point, indicating the potential that the marketing option still has in the expansive US market (Paine, 2010). The European market took this same path in its growth. A scrutiny of the unexploited potential in this sector has made retailers remain heavily active in this type of marketing even with the sluggish growth of the economy. Moreover, the inactive relation between retailers and manufacturers that has existed overtime is significant to the massive interest of retailers in the private brands (Karolefski, 2002). With increased consumer reservations on spending on food, as well as lack of continuous flow of innovative products has made retailers, like Starbucks, to copy the giants in the field to sell products that meet the expectations of consumers at a low cost.

An analysis of 10 store brand retailers in the US have revealed how marketing of this nature has been fruitful. The graph below shows the performance of the 10 store brand retailers in terms of the average private-label dollar share.

The graph shows that private brands have been successful given the initiative by retailers to convert the store brand buyers to buy from their stores. For example, Aldi has been successful in converting the highest number of consumers to purchase in its stores (Peckenpaugh, 2013).

Retailers have segregated the market in terms of age, lifestyle, and gender. With this approach, consumers are turning their focus on the private label (Private Label Growth for Consumer Product Companies, n.d.). In the GfK report of 2009, consumers agreed that the penetration of private labels has been due to enhanced retailer capabilities. Retailers are taking advantage of the consumers position in rating store products as having similar qualities as the national brands. Therefore, the high interest has pushed retailers to invest heavily in the premium store brands. In terms of perceptions and attitudes, consumers sentiments had improved between 2008 and 2009, pushing up the search for store brands (Hale, 2014b).

Most consumers have agreed that store brands are essential in their daily lives, and they are not for people on tight budgets anymore. From the analysis, retailers have moved in to develop premium brands to meet the continuous needs of consumers (Store-brand groceries now on premium shelves, 2013). Moreover, spot-checks on the presence store brands revealed that some segments have high rewards. This scenario has made retailers to invest in this type of marketing; they can tailor their products to fit the available market size. Besides, some store brands having high selling categories do not require strong and expansive marketing muscles (OBrian, 2014). This has made it possible for retailers to venture in this marketing option. Some of these products include milk, sugar, cheese, and fruit canned.

How does a major national brand defend itself?

In response to the continuous evolution in which store brands are slightly gaining entry into the market, national brands have come up with different strategies to remain operational. In this competitive market, operators have to decide whether to fight them or join them. According to Hoch (1996), store brands had slightly infiltrated the market with 15% of total dollar sales in 1996. The competitive grocery environment has made national brands to view store brands as their real competitors in the national platform. Even though private brands are offering low prices to tap into the market, national brands can adopt the product differentiation strategy (Schellbach, 2014). This approach will enable them maintain consumers who prefer unique products even if the prices are high. Markedly, some consumers remain loyal to these outlets given their tags or names. As a result, as a way of maintaining market presence, the national brands should make their products easily identified among different groups of products (Ahmad, Anders, & Marcoul, 2013).

With the expansive services and engagements within national brands outlets, attempts to lower prices can result in massive losses. This approach is similar to the strategy by Pepsi Company in its bid to compete the Coca-Cola Company in the sales of soft drinks. The Pepsi Company decided to increase the quantity of the soft drinks, but left the prices intact. This strategy has worked well for the beverage company. At the same time, the national brands can move swiftly to segment their markets in terms of age, race, and gender (Schepke, 2012). In the US, different cultures view pricing differently. For example, the Hispanics and the Black Community are very concerned with the prices of commodities. In this aspect, national brands have to change even the quantity of products in order to maintain presence in the market.

Another worthwhile approach that national brands can use is separating themselves from private brands (Spector, 2013). This strategy will enable national brands to improve on quality while leaving the prices the same. The additional services such as improved packaging add value to consumers, making them maintain loyalty with the national brands. Quality is essential to most consumers when deciding on the brand to purchase with 85% of consumers interviewed by Gallup Poll in 1990 agreeing that they put quality as a factor when purchasing products (Hoch, 1996). Retailers at the national brands have to apply their economies of scale in providing price gaps  an initiative that store brands do not have the financial strength to do and remain sustainable in the market. The national brands can defend their positions by adopting this approach. National brands can as well opt to play a passive role as a way of defending their positions since rapid reactions in a highly volatile market can result in situations that are irreversible (Anselmsson & Johansson, 2014).

Conclusion

National brands have to continue investing in the brands given the high penetration power that store brands have displayed in recent times. National brands must move closer to consumers to get their issues, and address them straightaway. Even though private brands are gaining confidence in the previously monopolized market, there is need to respond continuously to consumers demands, as well as offer high quality products. With the numerous opportunities still unexploited in the store branding across the US and world over, retailers have to move speedily into the market to supply products that do not only meet the preferences of customers, but also ensure continuous existence with limited supervision.

References

Ahmad, W., Anders, S., & Marcoul, P. (2013). Production Arrangements and Strategic Brand Level Competition in a Vertically Linked Market. Web.

Anselmsson, J., & Johansson, U. (2014). Manufacturer brands versus private brands: Hochs strategic framework and the Swedish food retail sector. International Review of Retail, Distribution and Consumer Research, 24(2), 186-212.

Blessing, R. (2010). The Evolution of Private Brands. Web.

Fernie, J., Moore, C., & Fernie, S. (2003). Principles of retailing. Amsterdam: Butterworth-Heinemann.

Floor, K. (2006). Branding a store: How to build successful retail brands in a changing marketplace. London: Kogan Page.

Hale, T. (2014). Where are the Remaining Growth Opportunities in Store Brands? Web.

Hale, T. (2014). How 10 retailers are pushing private labels potential. Web.

Hoch, S. J. (1996). How Should National Brands Think about Private Labels? Web.

Karolefski, J. (2002). Marketing and Promotion: Retail Supermarkets. Web.

Landor Associates. (2011). Web.

Mullick-Kanwar, M. (2012). The Evolution of Private Label Branding. Web.

OBrian, H. (2014). Paper war rages between national brands, private labels. Web.

Paine, L. (2010). The evolution of private labels at retail. Web.

Peckenpaugh, D. J. (2013). Top 35 Private Label Retailers. Web.

Private Label Growth for Consumer Product Companies. (n.d.). Web.

Schellbach, R. (2014). Store Branding: How a store becomes an unmistakable brand? Web.

Schepke, J. (2012). 5 Essential Components of Localized Marketing Strategy for National Brands. Web.

Schneide, S. (2002). Private Label Brands. Web.

Silverstein, B. (2012). Are consumer brands losing their mojo to store brands? Web.

Spector, B. (2013). The evolution of a private-label brand strategy at J.C. Penney. Management & Organizational History, 4(8), 387-399.

Store-brand groceries now on premium shelves. (2013). Web.

Introduction

The Chiquita case is fraught with ethical intricacies and contradictions. This moral complexity has several root causes: the sociopolitical situation in Colombia, neglect of ethical standards and corporate social responsibility, as well as corporate greed. While it can be argued that the companys root cause was the desire to protect its personnel, other methods (necessitating even more financial resources) of doing so exist. Although the companys actions seem morally permissible from some perspectives, they neglect the principles of business ethics.

Political Contexts

To a considerable extent, Colombias political context had contributed to the creation of legal and ethical problems with which Chiquita dealt years later. After Colombia was decolonized, the country gradually became submerged into civil wars between its government and guerilla organizations. In the middle and second half of the last century, such organizations as FARC, ELN, and AUN claimed to fight the official governments oppression of the unprivileged lower working social classes. The fight was conducted by means of armed onslaught and resistance. Various guerilla organizations incorporated Marxist ideology, thus showing their alliance with the countrys poor. For the United States, the rise of communism in Colombia prompted Red Scare. The influence and dominance of guerilla organization in the region could not but affect the way Chiquita managed its affairs.

Industry Dynamics

The banana business has several peculiarities that shape the way it functions even presently. Banana-growing regions are not globally wide-spread and are chiefly located along the equator, complicating the fruits distribution. The problem is enhanced by the fact that bananas are extremely perishable. The demanding growing conditions, the climate zone, and the products perishability rendered the banana industry, in its international scope, inaccessible for locals due to high capital investment. Consequently, three giants covering the entire market and supplanting small local farmers emerged: Del Monte, Dole, and Chiquita. In addition, the industry requires a lot of low-skill human resources to prepare soils, grow, take care of, and pack the product. International companies took advantage of the regions socioeconomic situation to exploit cheap labor. It can be seen that the industry dynamics and peculiarities made it notably vulnerable to ethical dilemmas and scandals.

Ethical Concerns

The companys business practices at the time could be described as unethical. The primary ethical concern in the Chiquita case is sponsoring one of Colombias most dangerous paramilitary organizations terrorizing civilians  AUN. The banana company excused its actions by painting a situation in which it had no other choice but to succumb to extortion. Additionally, Chiquita collaborated with the paramilitary organization, allowing it to transport cocaine to the United States. It also can be said that the company profited from the unstable political situation in the region to exploit its natural and human resources, purchasing lands at lower prices and underpaying its workers. Overall, the most pronounced ethical issues in the case include exploitation and financing terrorist groups.

Alternative Solutions

The two most evident choices available to Chiquita were paying the paramilitary groups or withdrawing its operations from the country altogether. Both choices have significant downsides: the first choice violates corporate social responsibility standards, while the second one entails large financial losses. Another option would have been to involve Colombias government, asking it for military protection. Nevertheless, according to the companys CEO at the time, the government was unwilling to help, lacking adequate military resources and internal stability. Hiring more private security contractors seems like another possible solution, which also has negative implications for the company, possibly creating ground for additional violence. It can be seen that Chiquitas options were filled with contradictions.

Basic Duties and Corporate Social Responsibility

From the perspective of a companys basic duties before its workers, Chiquitas actions, to an extent, could be justified. Providing employees with a safe working environment is a companys major responsibility, which Chiquita fulfilled by financing AUN, thus protecting personnel from their violence. On the other hand, the companys actions do not comply with corporate social responsibility norms. By paying AUN, the company directly contributed to the countrys internal war, aggravating further its political and social problems. Overall, Chiquitas actions are not fully consistent with the companys basic duties, considerably damaging the countrys in which it operated socioeconomic state.

Best Business Practices

The way Chiquita operated in the second half of the last century did not reflect best or the most ethical business practices. From the moral perspective, the best business practices are built on the principles of beneficence and non-maleficence. Additionally, such values as reputation, morality, integrity, and lawfulness define optimal business activities. Chiquitas financial support of AUN does not comply with beneficence and non-maleficence, which are at the core of ethical practices. Thus, to reflect best practices, a company should abide by the law, incorporate and respect human rights, practice benevolence and non-maleficence, and take morally correct decisions even if the pressure to do otherwise is high. Overall, Chiquitas business activities did not align with these norms.

Utilitarian Ethical Theory

The company used a utilitarian approach to the moral dilemma, focusing on the outcomes rather than the method of reaching them. From the utilitarian ethical theory perspective, an action is defined as morally permissible primarily based on its results. In Chiquitas case, one of the objectives was protection and wellbeing, including protection and wellbeing of its employees. Considering utilitarian ethics, this result can justify the means by which it was reached. Nevertheless, Chiquitas goal was not the greatest good overall, but the companys good, while utilitarianism emphasizes the former. By employing utilitarianism, the company succumbed to one pitfall of this theory.

Deontological Ethical Theory

Chiquita might have employed a deontological approach to the dilemma, focusing on following the law and moral rules rather than obtaining lucrative end results. While utilitarian theory might partially justify the companys actions, the deontological approach would have condemned them. From the standpoint of deontological thinkers, an effort is not defined by its consequences but should be measured based on clear rules and moral standards. If the companys management had applied this theory, they would have avoided some of the detrimental consequences, such as the ruined public image. Furthermore, thought process within the framework of the deontological theory could have yielded a solution other than paying terrorist groups  both morally permissible and helpful in avoiding financial losses.

Chiquitas Alternative Actions

A more complex but at the same time, better solution would have been to engage the local community. This approachs premise is that such organizations as AUN, FARC, or ELN are not isolated from Colombias population (Baur et al., 2015). These paramilitary groups strongly rely on locals, which is corroborated by the fact that they incorporate communist ideology to gain popular support. Chiquita created workplaces and, to a degree, contributed to the social advancement of the territory where it operated. Losing the benefits that the company brought to the territory would have economically hurt the community, increasing Chiquitas utility for locals. Chiquita and its beneficial presence in the region could have gained popular support and protection and leveraged it against AUN (Baur et al., 2015). This approach is primarily political and non-violent in contrast to hiring private security contractors, making the proposed solution more advisable.

Restoration of Chiquitas Reputation and Competitiveness

The public image of Chiquita as of an unethical company tangibly damaged its reputability and financial performance. Restoring the companys reputation and competitiveness involves corrective action based on the image restoration theory. Given that currently sustainability is an influential trend, Chiquita should paint an image of an environmentally friendly company, practicing organic agriculture and pesticide-reduction, diminishing its carbon and water footprints as well as treating its employees fairly. Additionally, social media marketing would play an instrumental role in the image restoration process, since social platforms are efficient for company-customer communication. Such marketing strategies as fundraising events also could help Chiquita appear more philanthropic. Acknowledging and compensating families who suffered from AUNs violence is another essential step. Overall, acknowledging its mistakes, sustainability combined with appropriate digital marketing, and fundraising could improve the companys image.

Conclusion

The Chiquita case provides an array of valuable lessons regarding the role of ethics in business practices, social accountability, and brand image marketing. Although the industry dynamics and socio-political situation in Central and South America created thriving conditions for ethical dilemmas, the company in question could have avoided the humiliation and financial downfall. While not denying the moral complexity of the situation, it appears that by compromising business ethics standards, the companys management neglected more intricate but also potentially more effective solutions such as collective action.

Reference

Baur, D, Palazzo, G., & Rochat-Monnier, D. (2015). The corporate social responsibility story of Chiquita. Web.