Questions
17-1 The chapter explains five international marketing orientations. Which one applies
most to Tommy Hilfiger? Explain why.
17-2 The chapter explains five elements in the marketing mix (product, pricing,
promotion, branding, and distribution). In which of these have Tommy Hilfiger’s
operating practices been the most standardized globally? Explain why this has
been possible and desirable.
Teaching Tips: Review the PowerPoint slides for Chapter Seventeen and select those
you find most useful for enhancing your lecture and class discussion. For additional
visual summaries of key chapter points, also review the figures and tables in the text.
CLOSING CASE: Grameen Danone Foods in Bangladesh
Bangladesh has millions of impoverished persons, a high illiteracy rate, poor infrastructure, high
unemployment, and a high incidence of infectious disease. Nevertheless, The Grameen
Foundation from Bangladesh, and Groupe Danone from France, has created a joint venture social
business to assist some of the most needy citizens and consumers in the world. A social business
operates differently than traditional NGO’s, corporations, or not-for-profits. The organization
utilized each venture partner’s respective strength in micro-banking/finance and the delivery of
food products to provide much needed products. The venture provides a socially responsible
approach to assist those in need. Aside from the favorable publicity, the venture may also be a
good long-term strategy for the French corporation. Today’s impoverished may be a viable
market for future sales as economic, social, and health conditions in the country improve. The
venture required the organizations to make all of the classic strategic marketing decisions,
including branding, pricing, promotion, distribution, etc. Thus far, the joint venture appears to be
operating successfully. Inspired by this new model of collaboration, other major MNEs are
establishing social businesses with the Grameen
Foundation. Despite the publicity and promise of these high-profile collaborative ventures,
however, Danone will need to evaluate how brand recognition and goodwill at the BoP can be
harnessed for sales farther up the pyramid in order to expand to more affluent market segments.
QUESTIONS
17-3. What advantages might Danone receive from the Grameen Danone joint venture?
17-4. How much do you think Danone’s decision to set up a social business was motivated by
wanting to be socially responsible versus believing the move would help its performance? Does
the answer to this make any difference?
17-5. If Danone were to add products to sell to the BoP, which of its products would be the best
candidates? Why?
“All questions marked with this blue star in the textbook are also found as discussion
board questions in the MyLab. These are meant to prompt discussion among your students
and therefore, no correct answer is provided.”
17-6. Since the establishment of the Grameen Danone Foods social business, the number of
social businesses worldwide has grown so much that there is now an annual global summit in
Wolfsburg, Germany. Are there types of companies that might not be good candidates to
establish social businesses? If so, what are they and why?
17-7. Can you think of any other MNEs that can collaborate successfully with the Grameen
Foundation and help solve specific problems in Bangladesh? How can they do this?
17-8. Initially, Grameen Danone Foods JV was expected to make a profit by 2012. Although no
official numbers are published, it seems that they had not reached that point by 2016. Should
Danone continue to invest in this JV? If so, what can be done to improve the financial outlook of
the JV going forward?
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ADDITIONAL EXERCISES: International Marketing
Exercise 17.1. While many firms have moved to develop globally standardized products,
others have moved toward more product differentiation across countries. Ask students to
discuss the types of products for which they would expect to see more global
standardization, and those for which they would expect to see more local differentiation. Be
sure they consider both goods and services. (LO: 2, Learning Outcome: To be aware of
product alterations when deciding between standardized and differentiated marketing
programs among countries, AACSB: Dynamics of the
Global Economy.)
Exercise 17.2. A number of advertising agencies have expanded their operations to the
global level so they can offer their services on a worldwide basis. Ask students to discuss the
reasons an MNE might prefer to work with a single global advertising agency rather than a
series of local or regional agencies. Then ask students to explore the challenges advertising
agencies face when they choose to offer worldwide services. (LO: 3, Learning Outcome: To
appreciate the pricing complexities when selling in foreign markets, AACSB: Analytical
Skills.)
Exercise 17.3. When a firm is confronted with excess capacity but its national currency is
relatively weak, it may choose to export to markets with relatively stronger currencies. Ask
students to discuss the logic and wisdom of basing a long-term international marketing
strategy on foreign currency swings. What would a firm have to do to effectively position
itself to maximize such “opportunities”? (LO: 3, Learning Outcome: To appreciate the
pricing complexities when selling in foreign markets, AACSB: Dynamics of the Global
Economy.)
Exercise 17.4. Ask students to identify a popular local product that is not widely available
in other countries. Have the students pick a country and develop a marketing plan for the
product in that country. What alterations might have to be made to the product or its
packaging for it to succeed in the target country? How should they distribute the product?
What about pricing? Is there a large potential market for the product in the target country?
Why or why not? (LO: 4, Learning Outcome: To be familiar with country differences that
may necessitate alteration in promotional practices, AACSB: Dynamics of the Global
Economy.)