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Card 8 Text 2 Investors Adapt to Consumer Trends When the world’s biggest soft drink company starts changing its marketing tactics, investors should ask why. Coca - Cola, which has traditionally promoted itself via the Coke brand, using slogans such as ‘Coke is it’, now wants to inform consumers that Coke is not the only drink it sells. Its most recent campaign, called ‘Make every drop count’, says: ‘You've always known us as Coca-Cola, the soft drink. Now it’s time you knew us as Coca-Cola the company.’ The television, print and Internet advertisements in the UK come at a time when consumers are ditching foods and drinks that are perceived as unhealthy (such as sugary fizzy drinks and salty crisps) for products that appear to offer some kind of health benefit. Coke is using the new campaign to impress upon consumers the fact that it sells all kinds of drinks, including bottled water, juices and teas. The campaign is important for the company; because it risks losing money if it does not sell the kinds of drinks consumers now want to buy. Analysts say that growing demand for healthier kinds of foods and drinks is not a fashion, but a long-term trend that increasingly affects corporate profits. Companies which benefit are those that already produce the kinds of products consumers want, or companies that are taking steps to adapt existing products. These include Danone, the French company, as well as Swiss food company Nestle, which has made nutritional foods a core strategic focus. Companies that do not meet consumer needs are suffering. In March, Asda took the juice drink Sunny D (previously known as Sunny Delight) off its shelves after finding its customers did not want to buy it. 3.Be ready to discuss the topic. Card 9 Text 1 Marketing Marketing is the process of communicating the value of a product or service to customers, for the purpose of selling that product or service. Another simple definition of “marketing” is “managing profitable customer relationships”. Marketing can be looked at as an organizational function and a set of processes for creating, delivering and communicating value to customers, and customer relationship management that also benefits the organization. Marketing is the science of choosing target markets through market analysis and market segmentation, as well as understanding consumer behavior and providing superior customer value. From a societal point of view, marketing is the link between a society's material requirements and its economic patterns of response. Marketing satisfies these needs and wants through exchange processes and building long term relationships The origins of the concept of marketing have their roots with the Italian economist Giancarlo Pallavicini in 1959. These roots are accompanied by the initial in-depth market research, constituting the first instruments of what became the modern marketing, resumed and developed at a later time by Philip Kotler. Recent approaches in marketing include relationship marketing with focus on the customer, business marketing or industrial marketing with focus on an organization or institution and social marketing with focus on benefits to society. New forms of marketing also use the internet and are therefore called internet marketing or more generally e-marketing, online marketing, "digital marketing", search engine marketing, or desktop advertising. It attempts to perfect the segmentation strategy used in traditional marketing. It targets its audience more precisely, and is sometimes called personalized marketing or one-to-one marketing. Internet marketing is sometimes considered to be broad in scope, because it not only refers to marketing on the Internet, but also includes marketing done via e-mail, wireless media as well as driving audience from traditional marketing methods like radio and billboard to internet properties or landing page. Card 9 Text 2 Tesco Plans to Open Las Vegas Supermarkets Tesco’s unusually low-profile US expansion strategy is about to take it to Las Vegas, one of the fastest growing cities in the US, in addition to its plans to open stores in the Los Angeles and Phoenix areas next year. Tesco is the UK’s biggest supermarket chain, and retail analysts predict it will become Britain’s biggest non-food retailer by the end of the year, overtaking Argos Retail Group. The US push is part of Tesco’s plan to expand in its domestic market and abroad. Tesco is looking for sites in Las Vegas for its planned Fresh & Easy range of mini - supermarkets. Tesco announced its US plans in March, after conducting comprehensive market research that included a trial store in a warehouse in Los Angeles that looked like a film set. Tesco has not said how many stores it plans to open in the US and declined to comment on its strategy for Las Vegas. The company said in March it would invest £250m ($476m) a year to fund its US expansion, a budget that should enable it to open as many as 200 stores a year. Las Vegas, with 1.7m people, is in Nevada, the fastest- growing state in the US. There is intense competition there for new customers between its existing traditional supermarkets dominated by Kroger and Safeway - and Wal - Mart, the largest US retailer, which now has about 20 per cent of the overall US grocery market. Tesco’s strategy is based on creating a range of small stores on sites of about 14,000 sq ft similar to its Tesco Express concept in Europe. 3.Be ready to discuss the topic. Card 10 Text 1 Lunching a New Product Introducing a new product into the market is a significant business achievement. Launching your new product is your final, important step in the new product development (NPD) process. Deciding when, how and where to launch your product will determine its early impact on the market. Your marketing strategy and marketing plan will direct your product launch and help you make the most of your business and product exposure opportunities. A successful launch is a process, not an event. Too many companies focus all their energies on the announcement and first trade show and then wonder six months later why they missed their sales goals or disappointed early customers with lack of support. A successful launch process must include buy-in from all levels of your organization to synchronize and integrate efforts. A Launch Team should be established. A clearly written, comprehensive Launch Action Plan should then spell out individual responsibilities and overall objectives, strategy, timeframes and requirements. Knowledge sharing systems should then be devised to share best practices and adjust actions as needed. Know where you’re going and how to recognize if you’ve gotten there. Gather and analyze market intelligence, assess your current situation and then determine what you want your launch to accomplish within the market, company and with prospects, analysts and editors. Now gain consensus so all stakeholders are invested in the plan. A formal and comprehensive integrated Product Launch Plan should guarantee sales integration, involve all critical organizations, establish accountability with actions and timelines and ensure alignment, consensus and success. A professional and effective product launch normally requires a good six months to handle all the unexpected issues, delays and snafus that will arise. You also need an adequate budget, resources, systems and most importantly, healthy relationships with all team members, sales channels, analysts and editors. Repair any broken relationships before product launch because these types of issues are the greatest time-eaters. Card 10 Text 2 Misunderstanding and Mistrust Bedevil Contracts A catalogue of mistakes and misunderstandings is revealed today in a global study of IT outsourcing deals which helps to explain why there is much mistrust and tension between clients and suppliers. The study, by PA Consulting Group, includes the views of all parties in an outsourcing relationship - clients, suppliers and the lawyers who mediate between them. The problems it reveals are both surprising and disappointing, because over the past 15 years, many North American and European companies have benefited hugely from moving large parts of their IT operations to external service suppliers, either ‘onshore’ or in countries such as India. In this mature market, says PA, outsourcing deals should not go 25 wrong. But deals do fail because buyers and suppliers of outsourcing do not have a clear idea of each other's objectives. Poor communication of objectives results in big differences between what clients want and what suppliers think they want. Meanwhile, clients are not putting sufficient time and effort into planning the outsourcing process. The study says misunderstandings are created when the relationship between clients, suppliers and lawyers is built on undeclared assumptions which creates a climate of mistrust. For example, only a fifth of the suppliers questioned felt clients effectively communicated their objectives, and two-thirds of clients thought they should have verified their suppliers’ ability to deliver. Poor investment in three key areas is preventing the evolution of IT outsourcing as a way to transform an organisation: the sourcing strategy is ill-conceived, creating a gap between client and supplier; the programme is not tailored to the needs of the organisation; and the internal team for managing the relationship with the supplier is inadequate. 3.Be ready to discuss the topic. Topics for discussion
Case studies Case study: “Fast-Track Inc.”. Goal: choose a candidate for an international promotion within an international trading company. Case study: “Lifetime Holidays”. Goal: negotiate between a traditional package holiday company and an online business to team up. Case study: “Valentino Chocolates”. Goal: propose a strategy for revival and growth of a maker of fine chocolates. Case study: “Genova Vending Machines”. Goal: tackle problems of stress and low morale in the human resources department of a company that has recently merged with another. Case study: “Kristal Water”. Goal: analyse the reasons of a new bottled water and create the correction action. Case study: “The way we do things”. Goal: analyse the difficulties following a merger between two companied whose sales teams have different ways of working. Case study: “European Campers”. Goal: analyse a conflict between a manager and a salesman and propose a solution. Case study: “Minerva A.G.” Goal: present ideas for new products to a shop chain that specialises in innovation goods. Сценарий Case study: “Fast-Track Inc.” Goal: choose a candidate for an international promotion within an international trading company. Stage 1 Instruct the Ss to read silently the sections entitled “Background”. Including the extract of the job description giving the qualities required of the successful candidates. While students are reading, write the headings from the left-hand column of the table below on the board. Ss elect information to complete the column on the right.
Stage 2 Divide Ss into two groups of three or four. Get each group to analyse the written information about all the candidates. Circulate, monitor and assist if necessary. Get each group to appoint a spokesperson who takes notes of the key points for each candidate, without getting into comparing the merits of the candidates. Play the recording, stopping at the end of the recording foe each candidate and explaining difficulties. Alternatively, get the groups to specialize in a particular candidate. Ask a spokesperson for each group to summarize for the whole class the interview that they listened to. |
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