Attributes Of A Global Brand Marketing Essay

Attributes Of A Global Brand marketing EssayThere ar several attributes that makes aspect One a ball-shapedised brand. Firstly, it is highest class of one-seater auto racing in the world, driving the fastest cars on the planet. F1 holds the most exhilarating car races, young boys aspires to be F1 racers, millions of race buy tickets to the races and subscribe to media that streams every year to watch. tally to Levitt (1983), different cultural preferences, national tastes and values, and stemma institutions argon vestiges of the past some inheritances die slowly others win and develop into main(prenominal)stream global preferences. F1 became a mainstream favourite sport of the world. The state-of-the-art engineering physical exertiond in the race such as engineering of the cars, time keeping, changing of tyres at the shortest time etc. attracts people of the current generation. Almost everyone everywhere wants what they have heard about, seen, or experienced via sweet t echnologies (Levitt, 1983).The unpredictability of F1 allows it to attract viewing audience constantly. It is a unique experience that cannot be duplicated easily e.g. crashing as different parts of the track, the seriousness of the crashes, different outcomes etc.Organising the race is very costly so running a team is broadly speaking and sometimes entirely sponsored by various big international brands that wish to gain exposure from F1. And thus, consumers of the brands would be certain F1, for the logo will be displayed on all kinds of increases and media like advertisements, stark nakeds and magazine interview articles etc., and promotions for F1 will include the brands logo as well hence creating maximum aw atomic number 18ness to F1 and the international brands market.F1 is a season consisting of series of races held around the world on purpose-built circuits and public roads. The annual calendar is global, taking 19 races in countries such as Australia, Asia (Malaysia, Singapore and Japan), the Middle East (Bahrain), Europe (the mainstay of F1), and North and South America (Canada and Brazil). It goes through major highly-developed countries and with the ample scale of the event, F1 is known throughout the countries and their neighbours.Standardisation VS Adaptation gibe to Levitt (1983), most executives in multinational corporations are tactlessly accommodating they wrongly presume that market means giving the consumer what he says he wants rather than trying to comprehend exactly what hed like, thus persisting with high-cost, customized multinational crossings and practices instead of insistency hard and pressing properly for global standardization. They are afraid to standardise for fear that the system will fail. But Levitt (1983) says that poor execution is often the cause of failure, not the standardisation.According to Levitt (1983), the worlds needs and desires have been irreversibly homogenized. This makes the multinational corpora tion outdated and the global corporation absolute.Thus we have successful global brands like F1 which are mostly standardised than adaptive to the countries and cultures they are in, with accu run execution. F1 is known worldwide for its attributes as mentioned above, and thus it does not have a need to adapt when entering a new market in another country as what is expected of them is their signature races. The products and methods of the industrialized world play a single tune for the entire world, and the entire world eagerly dances to it (Levitt, 1983). There are 19 races, half of which are held in other continents apart from its traditional base in Europe. disdain that, the only adaption is probably the nature of the course track built for the race or the public roads structure in the countries. For example, from the classic circuits, now countries such as Singapore, Monaco, Melbourne etc., have street circuits, using a combination of public roads and circuits for the race.F1 G rand Prix event spans over a weekend and throughout the practices sessions it has a specific set of rules and control. This set of regulations is by the F1 and is standardised.According to the case study, merchandizing is through specialist F1 outlets worldwide, selling replica pose cars, baseball caps, jackets and other memorabilia, all create and packaged with the F1 logo. These subsidiary products of the brand are besides standardised, not adapted to whichever country the products are sold.Product Globalization StrategyAdapted from Jim Riley (2012), global strategy of F1 will involve appreciating that success demands a presence in every part of the world to repugn effectively, which is what F1 had been doing expanding to host the races at other continents.F1 make its product similar for all(prenominal) market by using the same set of regulations and control for the races, same technology and security and other elements in the operations despite being in different countries from Europe. Centralised control where the final say still belongs to F1 Management and F1 Administration. Ecclestone appointed the F1 Constructors Association (FOCA) to fight for commercial control with Fdration Internationale de lAutomobile (FIA).Taking reward of customer needs and wants across international borders as F1 fans are spread across the globe, instead of only watching from screens, F1 do it live by hosting at major countries where their target markets were. Locating value adding activities where F1 can achieve greatest competitive advantage, thus the expansion to the most developed countries in the world. Integrating and co-ordinating activities across borders, F1 does by having management and administration team to be there at each different location. This part is profound where Ecclestone effected the F1 Promotions and Administration (FOPA). According to Levitt (1983), as long as the marketing is good, consumers would be influenced to accept the product no matte r what they cl beat backed they want. This is where Ecclestone succeed in influencing people to thirst to watch the race.ConclusionThe changing patterns and structures of communication typically related to the demands of globalization require flexibility, responsiveness, speed, and efficient knowledge production, generation, and dissemination (Cynthia Stohl, 2004).A global industry is where firms compete in all world markets in order to survive (Jim Riley, 2012). Thus be like F1 where they venture into all the strength markets.A successful global corporation does not abjure customization or differentiation for the requirements of markets that differ in product preferences, spending patterns, shopping preferences, and institutional or legal arrangements (Levitt, 1983).A global strategy is successful when there are very minor differences between countries and competition is global, it has advantages in terms of economies of scale, lower costs, co-ordination of activities and quicker product development (Jim Riley, 2012). addicted what is everywhere the purpose of commerce, the global industry will shape the vectors of technology and globalization into its great strategic fecundity companies that do not adapt to the new global realities will become victims of those that do (Levitt, 1983).Environment QantasIdentify the Marketing Environmental FactorsThis paper will state how factors in the environment affect each other in Qantas Moment. The global marketing environment consists of 4 main environments. Refer Appendix A.Organization environment can be controlled by the firm.body structureCompany Image and brand equity are a vital parts in marketing as they help raise finance, form joystick ventures and alliances seeking marketing intermediaries, get purchase or sales contract, launch new products etc. (Ebstudies, 2012). From the case we can see it takes very long to shew a good rapport, but just one happening to tarnish the reputation.StrategyThe technologica l capabilities decide companys ability to innovate and compete. The design and safety of the Trent engines are extremely important as one minor mistake might tarnish the prestigious reputation and injure people as seen from the Qantas moment.ProcessRolls-Royce and Airbus aim to manufacture the desired quality and quantity products. Factors which influence the competitiveness of a firm or to sustain the firm are production capacity technology and efficiency of the productive apparatus, distribution logistics etc. (Ebstudies, 2012). Marketing resources like quality of marketing and distribution network have direct link to marketing efficiency. They are crucial for new product introduction and brand extension (Ebstudies, 2012).In intermediate environment, it is semi controllable by organisation.SupplierPurchasing goods and services from original external sources to make the engines and maintain engines is important. Thus suppliers can alter firms competitive position and marketing cap abilities e.g. raw material suppliers (for engine parts), energy suppliers, labour and capital. According to Michael Porter, the relationship between suppliers and firm epitomizes a power equation between them this equation is based on the industry condition and degree to which each of them is reliant on the other (Ebstudies, 2012).According to Ebstudies (2012), the bargaining power of supplier gets maximized in the following situationsThe seller is a monopoly or oligopoly firm.The buyer is not important customer.The suppliers product is important input to buyers business and finished product.The supplier poses real threat of forward integration.Every producer has to have several intermediaries for promoting, selling and distributing the goods and service to consumers (Ebstudies, 2012). The intermediaries for Rolls-Royce and Airbus are the skyways and the ultimate consumers are the flight passengers.StakeholdersIn the case study, the Qantas Moment had affected the stakeholders grea tly. Airbus parent company European Aeronautic Defence and Space (EADS) share determines aviate 3.5% when it happened.Rolls-Royce, the aircraft engine manufacturer fell 5% in share prices right it happened. Rolls-Royce tried to stop the slide in share prices by convincing the metropolis and investors that the incident is a one-off thing than a design demerit. However within 2 days, share prices dropped to 9%, losing 1 billion in market value. When point executive of Qantas blame the incident on the engine maker, the situation got worst. Rolls-Royce engineers had to decipher the occupation in Singapore and London to find out what is the main problem to address the market positively within a few days. Pictures of the blackened, shattered aircraft engine shared all over the world damaged the consumers confidence on its safety record. Qantas grounded all its A380 aircraft fitted with Trent 900 engine for three weeks, other airlines delayed flights for extensive flights and expensive checks to be carried out.It was found out that it was indeed a design fault the report into the Trent 900 failure states that oil fire is the most likely cause of the explosion, leading Qantas to seek compensation claims. It was also found that there was a potential manufacturing defect in the oil pipes. Thus Rolls-Royce is liable for financial compensation of at least 19 million to ground and replace the engines for Qantas and Singapore Airlines.Hence, the incident in November 2010 has not only caused damage to Rolls-Royce in financial terms, as well as its hard-earned reputation and the trust of its clients and the public. Only until February 2011 did Rolls-Royce improve its situation when they won a 1.4 billion service contract from Emirates to maintain the Trent engines on 70 Airbus aircrafts that the carrier was payable to take delivery over the next few years, and so a 700 million service deal for Emirates and a 3.2 billion engine deal for British Airways.Macro environment factors are external to the company and are uncontrollable. They do not affect marketing directly but indirectly influence marketing decisions of the company.Socio-culturalMarketers are interested in the size and growth rate of population in different cities, regions, and nations educational levels age distribution and ethnic mix households patterns and regional characteristics and movements (Ebstudies, 2012).Social forces attempt to make marketing socially trusty means that Rolls-Royce and Airbus should take a lead in eliminating socially harmful products and produce only what is beneficial to the society (Ebstudies, 2012).EconomicThe economic environment also has an impact on the business of an organization example would be the share prices of Rolls-Royce.TechnologyTechnological changes have also become particularly significant in the post-millennium world this is particularly true in terms of modern communication technologies (Business Case Studies LLP, 2013). Thus the share pri ces dropped almost instantly as information was communicable very quickly.The technological environment consists of factors related to knowledge applied, and the materials and machines used in the production of goods and services (Ebstudies, 2012). E.g. Rolls-Royce and Airbus produce top-notch engines to support commercial planes.Political and LegalMarketing decisions have to take into account government, pressure groups, law etc. Laws influence production capacity, capability, product design, pricing and promotion. Usually government intervenes in marketing cultivate regardless of what their political ideologies are (Ebstudies, 2012).Legal factors are vital as organisations have to work within legislative frameworks legislation can hinder business by placing onerous obligations on organisations if not dealt with properly (Learning Marketing, 2013).The physical environment consists of ecological factors beyond the organisations control. Physical forces such as non-renewal natural resources are finite e.g. oil, coal, minerals etc. Especially resources that contributes to the fuel the engines need in order to operate, affects the production greatly.Pricing AirAsiaSteps to Implement Pricing StrategyFirstly, pricing is one of the account global strategic decisions as the concept of exchanging money for goods and services received, in the form of exchange of bank notes or assign or other credit facility, is widely accepted in todays world (Lee Carter, 2009). Price element of the marketing mix is one of the more controllable and fast in effect, it is the element that generates taxation (Lee Carter, 2009).According to Lee Carter (2009), for a firm that develops and implement pricing strategy for services internationally, AirAsia should go through a series of stepsIdentify and fail factors affecting pricing e.g. cost and revenue models, customer perceived value, legal requirements etc. which is to apply the no-frills, low-cost strategy, a unique cost and rev enue model that has been proven successful from short-haul to long-haulSet pricing in the context of corporate objectives which is mainly low-cost flyingDevelop and select most appropriate price option of low-cost long-haul and low-cost short-haul flightsImplement selected option of low-cost long-haul with AirAsia XManage and finance international transactionsAccount for terms of tradeFactors to check in PricingAccording to Lee Carter (2009), based on Terpstra and Sarathy (2000), there are some factors to be considered in pricing products and services globally. They are assort under three main categories organization-specific, environmental and market-specific.Corporate and marketing objectives of AirAsia can be seen from the CEO, Tony Fernandes saying, Our group thrives on innovation in disruptive market by taking the opportunities to fly where others dare not fly or have minded(p) up. Thus AirAsia proposed clear-cut comparatively lower fares, going against the tide believe on brighter side of its future. According to the case, AirAsia also has very positive corporate culture, leadership, and entrepreneurial skills and the right management philosophy. Domestic and targeted countries government influences are not significant in AirAsias case except for the fuel hike however it was eventually offset by its unique pricing model. Consumers expectations the management believe that most customers do not have loyalty to any particular brand, because their choice is driven by prices, location AirAsias established network of flights to over 60 cities in 16 countries with 126 domestic and international routes from and within Malaysia, Thailand and Indonesia, and connects to China, Taiwan, India, Sri Lanka, Bangladesh, Australia and United Kingdom caters to a self-aggrandisingr target markets due to operations in these countries, ability to pay targeting the regular cypher travellers and new customers who switch from premium flights to AirAsia due to the big diffe rence in flight prices, market growth potential losing some regular travellers but gaining new travellers from premium flights, frequency of purchase focusing on maximising sales during off-peak periods but setting attractive promotions and discounts.The cost structure of AirAsia is basically to cut calibrate to leaveonly the absolute necessary costs to operate a flight, reducing fixed costs and eliminating most of variable costs. This is done by maintaining a simple aircraft overstep and a route network based on low-cost airports, without complex code-sharing and legacy overheads that weigh down traditional airlines. During economy fluctuations such as rising prices and deflation, people always look for cheaper alternatives, especially in recession times. Fluctuations also depend on seasonal changes during summer and school holidays. AirAsia adapts to the market as it the main airline deals with short-haul flights and the new subsidiary is a long-haul carrier, suiting needs of m ore customer segments.Product range of AirAsia is from the main short-haul flights what they started with to AirAsia X where they focus on long-haul flights. As a low-cost carrier for short distances, they grew to fly further when they came up with AirAsia X, providing options to travellers from more countries to use the airline. AirAsia can be considered a monopoly in Malaysia, Thailand and Indonesia due to the large numbers of hubs they have, and the number of domestic and international flights from these hubs, dominating from other low-cost carriers like them. A hike in fuel prices caused several low-cost carriers to free operations as they cannot cope with the increase and thus boost AirAsias market share and enhances its position as the ultimate leader in the regions low-cost airline sector. Market analysts predicted that the AirAsia group would have the marketing know-how and X-factor to capitalise on such opportunities that arise from its competitors falling out of the game. Marketing factors such as product localisation positions itself as a top-notch low-cost carrier, segmentation of customers by catering to short haul flights in ASEAN and longer haul flights in Asia and UK, image maintained as a good and affordable airline and differentiation of long and short distances flights. When faced with competition in the market, AirAsia targets cities least ventured to, to gain a competitive advantage. And due to its innovative business model, it is able to tide through the fuel price hike better than their competitors.Cost Reduction StrategiesAccording to Lee Carter (2009), we can rate how AirAsia has used cost decline strategies to contribute to their profitability and sustain from the continuous potential fuel hike. Refer to Appendix A.Economies of scale can be found by the increased number of domestic and international flights after the establishment of AirAsia X to fly new cities in China, Australia and UK.Economies of size are shown when the case express that AirAsia has nine regional hubs in Malaysia, Thailand and Indonesia instead of just one base in 2009.Learning curve can be seen from the shared service engagement where AirAsia and AirAsia X share pilots, cabin crew, service staff, website, IT platform, marketing and distribution to optimise efficiency on operating costs. AirAsia also invested heavily to build its brand and association with globally recognised organizations such as ATT William F1, British MotoGP etc.The significance in introduction of new technologies by AirAsia is the New Skies a state-of-the-art engagement system that contributed to expansion of booking capacity, allowing up to 1 million flights booking a day.The major competitive advantage over other airlines is that passengers can use the Kuala Lumpur hub to connect to a wide range of routes. And relocating by placing more regional hubs in Malaysia, Thailand and Indonesia, these are areas with low labour costs to achieve the same advantage over th e airlines at the cities too.AppendicesAppendix AAppendix BEconomies of ScaleWhen additional cost per unit of production reduced overall per unit cost, given similar fixed costsEconomies of SizeAchieved from larger scale of operation through greater bargaining powerLearning CurveCost reduction from greater labour productivity, improved designs, and resource mixIntroduction of New TechnologiesImproved efficiency gained through new technologies in innovation and processesRelocation of productMoving production facilities to countries with substantially lower labour costs