CASE STUDY MÔN MARKETING QUỐC TẾ

UNIVERSITY OF FINANCE - MARKETING

FACULTY OF MARKETING

INTERNATIONAL MARKETING
CASE-STUDY FROM CHAPTER 1 TO CHAPTER 16
Lecture: MBA Ngo Minh Trang
Group: 6
No.

Member

Student’s code

1

Pham Quang Thuy

1721001634

2

Do Thanh Ngan

1721000602

3

Trinh Quoc Bao

1721000655

4

Phan Hoang Bao

1721000654

HCMC – October 2019


CATEGORY
CHAPTER 1 ......................................................................................................................... 3
CHAPTER 2 ....................................................................................................................... 12
CHAPTER 3 ....................................................................................................................... 20
CHAPTER 4 ....................................................................................................................... 25
CHAPTER 5 ....................................................................................................................... 26
CHAPTER 6 ....................................................................................................................... 28
CHAPTER 7 ....................................................................................................................... 30
CHAPTER 8 ....................................................................................................................... 33
CHAPTER 9 ....................................................................................................................... 36
CHAPTER 10 ..................................................................................................................... 37
CHAPTER 11 ..................................................................................................................... 39
CHAPTER 12 ..................................................................................................................... 40
CHAPTER 13 ..................................................................................................................... 43
CHAPTER 14 ..................................................................................................................... 45
CHAPTER 15 ..................................................................................................................... 47
CHAPTER 16 ..................................................................................................................... 49

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CHAPTER 1
1. How is Carrefour’s marketing mix kept consistent across market?
Product:
Carrefour is one of the leading retail stores in the world. Carrefour stores &
its services are its marketing mix product strategy. It's stores are present
worldwide in various formats to cater to all kinds of needs of its customers:
- Hypermarkets - Ideal stop for families doing major shopping, offers a
variety of food and non-food items at low prices
- Supermarkets - Offers a huge variety of fresh produce, local products, and
non-food items at attractive prices
- Convenience stores – these are designed to address the local needs of the
customers offering products at low prices and are open till late-night.
- Cash & Carry stores, Hypercash stores – Displays all the products on
pallets and are sold usually to bulk buyers such restaurateurs and similar
professionals
- Multi-channel strategy – Carrefour is providing its customers with ecommerce and m-commerce solutions to make them shop anytime and anywhere.
Price:
Carrefour generally follows ‘low prices every day’ policy, but frequently
switches between a mix of policies., non-sensitive products are reasonably priced
and imported products are priced very high. However, the major portion of the
revenue comes from the sale of Carrefour’s own brand products which are priced
as per the demand. This gives an insight about the pricing strategy in the marketing
mix of Carrefour.

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Place:
Carrefour has more than 12,000 stores operating in more than 30 countries

in Europe, America, Asia and Africa. Carrefour has ensured its presence in 19
integrated countries and has franchised stores in 20 other countries. The group, in
addition to the traditional format has developed a wide range formats to cater to
all kinds of shopping pattern, be it daily purchases, weekly hypermarket visits or
bulk buys by business customers.
Carrefour ensures that all its stores appear inviting via the use of attractive
& modern designs with different banners in every store. Such steps provide
Carrefour a competitive advantage and helps in increasing sales and market reach.
As of June 2016, Carrefour has 1481 hypermarkets, 3462 Supermarkets, 7181
convenience stores and 171 Cash & Carry stores.
Promotion:
IBM & its partners developed an in-store promotion system for Carrefour’s
supermarket & hypermarket stores, that can be entirely operated by Carrefour and
thus enabling it to plan and execute more targeted campaigns and have feedback
about how effective they were. Carrefour, as a part of its Relationship
Management Strategy launched ‘MyCLUB’ loyalty card for its retail customers
to achieve their loyalty and ensure customer retention. This card enables
customers to earn points on every purchase which can be redeemed in place of
cash on their next visit.
Since this is a service marketing brand, here are the other three Ps to make it
the 7Ps marketing mix of Carrefour.
People:
Carrefour puts in a lot of effort and funds to train its existing employees not
only to provide excellent services to the customers but also to pass on their
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expertise and ultimately raise the service standards. In addition to salaries,
employees are offered various other facilities like- medical benefits,
supplementary pension scheme, profit-sharing schemes etc. Carrefour offers a lot

of options for the employees to enhance their skills and climb the ranks, likeindividual training paths and annual interviews.
Process:
Carrefour has streamlined its distribution and delivery by choosing the right
store formats as per the preference of its customers. The strategy of renovation of
existing stores and development of new stores for expansion has shown
considerable impact in its financial report. In addition to the brick and mortar
stores, Carrefour’s online shopping portal has made shopping very convenient and
efficient for the customers.
Physical Evidence:
Carrefour constantly tries to update itself as per the preferences of its
customers. It adapts itself to the market (Urban or Rural), this is not restricted to
the products only, this extends to lighting, furnishings, and additional services.
For example- Carrefour rejuvenated Bairro supermarkets in Brazil to provide a
better shopping experience to its customers and renovated its stores in Italy and
Belgium to enhance the offering by using its design to seduce the customers.
Hence, this completes the Carrefour marketing mix.
2. What value does Carrefour provide consistently in all of the various
countries in which it operates?
Carrefour’s role is to help its customers and consumers enjoy a better quality of
life, each and every day.

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Committed, Caring and Positive.
These three values bring us closer to our customers and consumers and reflect our
personality. We look for and find the best possible solutions for them every day.
Committed
We are committed. Committed professionals and committed members of the
community. We constantly strive to exceed everyone's expectations by providing better

value and finding new solutions for a better quality of life.

Caring
We are caring. Caring towards our customers and our consumers. We are receptive
to their needs, each and every day. We welcome them to our stores and meet their needs
with kindness, warmth and attention to detail.

Positive
We are positive. We rise to every challenge with energy, enthusiasm, and with
fresh ideas. We help brighten the lives of our customers and our consumers. For them,
for our employees, for the planet, we want the best, both today and tomorrow.

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3. How do local partners help Carrefour overcome difficulties in new
markets? What is the advantage of that approach?
- Local partners help Carrefour to navigate the differences in each countries’
culture and help Carrefour to form the thorough understanding by giving
Carrefour informations, statistics,... to make the right Marketing decision.
- Retailing behaviours may vary greatly depending on the local culture, so
using the local partners is smart.
- Carrefour can get into the new market by franchise, M&A. Carrefour
considers the local partners as the levelrage.
In 2010, Carrefour entered the Indian market using the partners who was
Kishore Biyani of Pantaloon Retail. This help the Carrefour counter moves by the
American Wal-Mart and the Bristish Tescon to corner the $390 billion Indian
retail market.
4. Explain the impact of drivers of globalization described in this chapter with
regard to Carrefour.

Channel of Communication:
Dealing with the language barrier. When entering the China market, as the
brandname close to the French pronunciation while the authority demands the
name written in Mandarin. The company has made up the name Carrefour
translate to 家樂福 Jia Le Fu in which Jia means Family, Le means Joy and Fu

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means Love, fortune, which reinforce the company’s name. For instance,
customer inquired about the right image of the company names.
Brand names characteristic: location based store.
Moreover, as the Carrefour means crossroad, when enter China market,
location plays a major role so that shops are primarily located at the crossroads.

Lower Transportation cost
The food is a special product which demands to be kept in the good
conditions not to mention the expired date. To keep everything on the right track
can higher the transportation cost of the product.
To solve the case, Carrefour sources many of its product locally. They
conduct the couple education and build the relationship with the local suppliers of
food through camps for Indian Farmers. The outcome is that the efficiency of
Indian farmers increased and improve the sources of foods for the company.
Culture or Patterns
The marketing team of Carrefour form the relationship with local partners
when entering the new markets. For example, when enter Taiwan in 1989, they
join hands to learn about Asian business environment, especially culture. This
knowledge led to expansion in six other Asian markets.

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Carrefour attempt to make large or small change to adapt the cultural
differences.
In case of Thailand
Thai people still prefer to shop at the local grocery store or traditional
market to shop at hypermarket.
In 2010, Carrefour introduced a mini-supermarket in Bangkok. These
smaller stores still provide ready-to-eat meals, plus grocceries frozen food drinks
and household products.
In case of Middle East countries
Donate to local charities to build goodwill and image. Moreover, during
Ramadan month in which more than 1 billion Islamic people over the world will
find their way back to the Mecca and conduct the religious activities include starve
for a day. After that day, the demand of food to recover is huge. In UAE 2009,
Carrefour donated the food worth AED 625.000 (ABOUT $170.000) to person in
need.

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Governmental action:
-

An active Carrefour in the relatively strong command economy of China

since 1995
-

France- less representative or less stable system to match the traditional

parliamentary democracy of France.
-

Indonesia Carrefour found guilty in the antitrust case ( vi phạm luật chống

độc quyền, luật nhằm tạo ra sự cạnh tranh công bằng )
-

The company has appealed, but if the appeal is lost, Carrefour may be

forced to sell its stake in a local Indonesian retailer.
5. How have the factor that create international marketing complexity both
helped and hurt Carrefour. has the impact been mostly postitive or mostly
negative?
Culture
- A thorough understanding appreaciation for culture means a fundamental
aspect of successful international Marketing
- Because the the retailing behaviour may vary depending on the local
culture so Carrefour has leveraged local partners when entering new markets to
find out similar values to serve.
- Carrefour is very smart when finding and using the local partner to
navigate the differences and take measures to adapt the local market.
- Learning about culture might increase the cost of MKT Research in
different country.
- Difficult to monitor the partners in foreign markets
- This trend might lead toi conflict agreement between the company and
partners reulted in poor collaboration.

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Language
Carrefour is smart when translating the brand name into Chinese, the new
brand name still carry the company value, which is the image of happy family,
this actions has inspire customer interest, easy to recall or remember and help the
company to stand out in the market and achieve the desired effect.
Political and Legal system
- China-the company has been active in the relatively strong command
economy of China since 1995, the marketing programs is adjusted to meet
governmental restrictions.
- Singapore has an open market
- Under the law or politic of one country, there may be limitations on the
products can be sold, the price for certain goods may be st by the government.
- France require the traditional parliamentary democracy, which means the
B.O.M of the company has to be less-representative or less stable.
- Pakistan has the high levels of political risk.
- Indonesia anti trust
Infrastructure
- The case of searching for local partner to handle the source of food in
India.
- India has farming system, large space, available space, existing building
as warehouses.
- In some cases that the country doesn’t have the stable or the good
infrastructure, this means there will be an increase in the MKT cost to transfer
employees or goods. Sometimes the company has to invest more to create the
market
In conclusion, the impact has been mostly postitive as the Carrefour has
taken right action to respond to the international complexity.
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CHAPTER 2
1. Discuss the difference between the use of cell phones in the African cellular
phone markets compared with cell phone use in developed-country cellular
phone markets.
Across Africa the same outside access created by mobile phone is possible
in isolated communities. Instead of traditional landline phones, consumers have
moved directly to mobile communication. Ninety percent phone subcribing Africa
use phone, often using the more accessible pay as pay you go models . The pricing
system allows consumers more flexibility than a traditional monthly plan.
Payments are solely linked to usage rates. Consumers keep multiple SIM memory
cards, switching to whichever company provides the best rate for calling being
made,. Short calls or even flahsing- the act of calling and hanging up after one
ring so that the person will not be billed of for the call, which also helps keep costs
low.
The use of mobile phone differs on the continent from other part of the world.
For many consumers, mobile technology offers a primary source of information.
Cell phones can be used to track the price of crops and to receive reminders to
take medicines, They save wasted trips outside of the village. Due to this focus on
function, the phones typically strip down many Western phone features and
instead only provide the ability to call and send text messages.
2. How might the different ownership structures in Africa reflect potential
economic systems in the host countries?
An economic system is a system of production, resource allocation, and
distribution of goods and services within a society or a given geographic area. It
includes the combination of the various institutions, agencies, entities, decisionmaking processes, and patterns of consumption that comprise the economic
structure of a given community. As such, an economic system is a type of social
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system. The mode of production is a related concept. All economic systems have
three basic questions to ask: what to produce, how to produce and in what
quantities, and who receives the output of production.
The ownership structure is defined by the distribution of equity with regard
to votes and capital but also by the identity of the equity owners. These structures
are of major importance in corporate governance because they determine the
incentives of managers and thereby the economic efficiency of the corporations
they manage.
Economic system is an important factor that businesses should consider
when choosing ownership structure because it has a direct impact on the business
ability of the business. If the right ownership structure is chosen, the business will
develop rapidly and the potential for competition will be high. Conversely,
enterprises will be retarded and soon be kicked out of the competitive
environment.
Beside the growing economy, many business companies appear, with a
variety of ownership structure. For example, there are so many kind of ownership
structure like private owned- (Safricom, Cellcom, MTN, Zain, …), state owned(Sotelma, Mcel, Mtel, Tunisie Télécom, …), vivdendi subsidiary- (Maroc
Telecom,…), subsidiary- (Vodacom, …), joint venture- (São Tomé Telecoms,
Sonatel, …)
The African economic system might be mixed system. A mixed economic
system is an economic system that features characteristics of both capitalism and
socialism. A mixed economic system protects private property and allows a level
of economic freedom in the use of capital, but also allows for governments to
interfere in economic activities in order to achieve social aims. According to
neoclassical theory, mixed economies are less efficient than pure free markets, but
proponents of government interventions argue that the base conditions such as

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equal information and rational market participants cannot be achieved in practical
application.
Advantages of mix economic system:
a. It promotes a quick economic development.
In this type of economic system, both the public and private sectors can
operate equally, which means that economic development will be quicker. This is
especially true considering that economic resources will be utilized efficiently.
Also, depletion of resources will be slowed down.
b. It creates a balance in regional developments.
The planning commission of a country will be able to create policies for the
improvement of every region. In addition, the government would also try to
develop each sector of the population.
c. It encourages lesser income inequality.
With a mixed economy, there will be lesser inequality when it comes to
income, where the inheritance law is applied to enable members of society to
become richer. As for the public sector, it would try to provide economic utility
to the general public, leading to further reduction of inequality in income.
d. It provides the freedom to own a private property.
People are free to obtain property in a mixed economy, which means that the
idea to work even more will be encouraged. Again, this will help in the fast
economic development, especially in the areas of industries and agriculture.
Disadvantages of mix economic system:
a. It brings about the fear of nationalization.

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As the private and public sectors coexists, the government would have the
ability to own and nationalize any industry. This means that private entities will

have to stay on the psychological apprehension that their business would be
nationalized or taken over by the government.
b. It could risk the government to go too far.
In a mixed economy, determining the exact role of the government in the
private sector would sometimes become a guessing game that would result to
unfair practices in both sides. It is believed that the government would manage the
economy poorly, so its involvement is usually regarded as inappropriate.
c. It observes lesser use of resources.
While the interest of the society is important in this system, it also hinders
maximum use of available resources. This is primarily because of the government
trying to mobilize resources to produce products and services that are generally
beneficial for society, rather than doing it for the betterment of the economy.
d. It can lead to higher taxes.
With more state intervention in the economy, it would mean that the
government would invest more and would get their funds largely from tax
revenues. More taxes would be required from the people, which can lead to
negative consequences.
Basically, the success or failure of a mixed economy would still depend on
how it is managed. However, based on the advantages and disadvantages listed
above, we will be able to know whether it will do our country any good or just
make situations even worse.
3. Would the model for mobile phone expansion apply to other less-or leastdeveloped countries? Why or why not?

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The model for mobile phone would expansion apply to other less or least
developed countries. Because: These countries have a large population, which is
a potetial market for develop mobile communications. Besides, there are some
surveys, datas about the expansion of mobile phone in less or least developed

countries:
- There is a survey underlined a simple fact: “Less developed countries,
especially LDCs has experienced an incredible boom in mobile phone use over
the past decade. In 1998, there were fewer than four million mobiles on the
continent. Today, there are more than 500 million. In Uganda alone, 10 million
people, or about 30% of the population, own a mobile phone, and that number is
growing rapidly every year. For Ugandans, these ubiquitous devices are more than
just a handy way of communicating on the fly: they are a way of life. It may seem
unlikely, given its track record in technological development, but Africa is at the
centre of a mobile revolution” ( Source: “Mobile economic revolution”)
- Mobile phones will account for almost one-tenth of African GDP by the
end of the decade, as mobile broadband connections triple in five years,
underlining how the explosive growth in the telecoms industry is having a major
economic, social and political impact on the continent. Market analysts Ovum
expect mobile broadband connections, which stood at 147m in 2014, to account
for a substantial share of the mobile market, forecasting a rise to 76% at the end
of 2020, up from just 17% in 2014.The figures underpin the extraordinary rate at
which the mobile industry has grown across the continent over the past decade
and a half. The sector contributed $100bn (£76bn) to sub-Saharan Africa’s
economy in 2014 and is expected to account for three times that in 2020. John
Githongo, veteran anti-corruption activist. “The growth in access to smartphones
leads to the creation of networks that are broader, deeeper and more durable than
we have seen in the past.” (Source: “Africa calling: mobile phone revolution to
transform democracies”)

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- There is a figure traces the expansion in mobile phone subscriptions in
developed, and least developed countries. Through this figure, it can be seen that

Developing Countries and Least developed Countries have high growth rates.

4. How do Porter’s five factors explain the high level of industry competitive
intensity in the African mobile phone market?
Five factors:
Substitutes: The mobile pricing system is too flexibility since payments are
linked to usage rate and customers will use the one that bring them benefit the
most.
Supplier: There are at least 6 local providers in the market.
The entrants: There are large barriers to entry in terms of cost and
government approval.

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Industry competitors and extent of rivalry & advantage: Local
companies has a strong position in the market. They has varieties of ownership
structures and present a strong challenge to outside competitors.
Buyers: Africa has the fastest growth and most exciting market in the
international marketplace. 50% growth per year since 2002, 28% of African
consumers use mobile phone.
5. How might an African government apply Porter’s national competitive
advantage diamond to further spur cellular phone specialization within a
country?
Things that government should do to further spur cellular phone
specialization:
Government required to be handle exchange rate differences.
Adding some laws to protect the interests of investors.
Most of the labor is poorly qualified so government needs to improve
education to raise labor quality.

Upgrading infrastructure, medical services
Enactment of anti-money laundering and anti-corruption bribery legislation
that accords with international best practice on such issues, a reduction in red tape
through a significant decrease in the number of licences and permits required to
carry on business in many countries, and stronger institutions led by
meritocratically appointed professionals with long-standing success of growing
business in the private sector.
Government issue Prudent macro-economic policies to provide a sound
foundation for investment and have increasingly freed people from the
impoverishing effects of inflation. Privatisation programmes, lower corporate
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taxes (through provision of corporate income tax holidays and reductions in the
standard rate for taxes such as import duties and VAT for large infrastructure
projects), reductions in trade barriers and improving judicial systems all go to
make up an increasingly appealing environment for overseas investors.
Legal systems in Africa are rooted either in civil law (derived from the
French, Italian, Portuguese or Spanish systems) or common law (derived from the
English system) and, in certain countries, these systems operate alongside Sharia
law and tribal or customary laws. Lack of certainty is a feature affecting many
local legal systems, driven by inconsistent court interpretations, a shortage of
precedents and unreliable public registers. Local market practice may also differ
significantly from international market practice. So Government need to enhance
consistency in the legal system.
M&A transactions in African jurisdictions are particularly exposed to risks
relating to bribery and corruption. A historical combination of a high degree of
influence enjoyed by public officials over significant foreign investments,
relatively weaker institutions, a lower level of transparency and infrequent
prosecution of wrongdoing has made bribery and corruption a significant issue. In

Transparency International's Corruption Perceptions Index (the leading
international measure of perceived public sector corruption), 90% of sub-Saharan
African countries scored below 50. So government need to anti-bribery and
corruption.
Porter argues that a country's firms gain competitive advantage if their
domestic consumers are highly sophisticated and demanding. Such consumers
would put pressure on domestic companies to meet high standards of product
quality and produce new designs. The government should create conditions to
improve the quality of life of people, enabling them to be exposed to telephones
and telecommunications.

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CHAPTER 3
1. Consider the expansion pattern of DHL. How might this relate to the
intergration activities discussed in this chapter?
DHL Integration Solutions are online web services integration capabilities
that provides DHL service availability, transit times, rates, shipment and courier
pickup booking along with shipment tracking
Integrated Shipping Solutions – Customization and Flexibility
DHL makes express shipping simple and efficient with fully-integrated
business solutions.
The benefits of DHL Integration Solutions:
• Use in-house shipping and warehouse management systems and still be
able to provide access to complete set of DHL Express shipping services
• No need to locally maintain DHL business rules.
• Provide DHL capabilities from internal shipping sites, shopping carts and
E-Commerce websites
• No DHL hardware or software is required on customer site

• Use standard XML based, secured platform to integrate with DHL
• You control implementation timelines

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Available Services
Capability

Shipment Processing

Pickup Booking

Rate Quote

Label Generation

Tracking

Returns

Paperless Trade

Shipment
Preparation

2. Does the reduction of barriers to trade help or hurt DHL’s business? Justify
your answer
We believe that the reduction of barriers to trade helps DHL’s business because:
Firstly, lowering trade barriers can makes DHL more successful and wealthier by

assisting small businesses internationally
Secondly, lowering trade barriers creates chance for DHL to be closer and wellknown in foreign countries
Thirdly, DHL creates opportunities to target bottom-of-the-pyramid consumers
with affordable price because of low input fees. Besides, it is easier for DHL to compete
with local competitors

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3. Visit the DHL small business website (www.DHLsmallbusiness.com). What
are four activities on the websites that facilitate small business trade?

Activity 1: Provide solutions for small
and medium enterprise when operating
their companies

Activity 2: Easy shipping: instruct
business how to use DHL’s shipping
service

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Activity 3: Business Across Border Understanding International Trade
International trade is a complex
process, but also an exciting business
opportunity.
DHL can help not only with global
customs

requirements

and

trade

terminology but also with local import
and export support and resources.

Activity 4: Not have

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4. Would a supporter of protectionism view DHL’s activities as positive or
negative? Do you agree with that perspective?
First of all we must understand what is protectionism to answer the question
• In economics, protectionism is the economic policy of restraining trade
between states (countries) through methods
• Protectionist policies protect the local industry, national security, cultural,
environment from foreign competitors, earn revenue and promote consumer
revenue
There are some disadvantages of Protectionism:
• Trading partners implement protectionist policies in retaliation, causing
demand for exports to plummet, hurting workers and businesses
• The government gets into the business of “picking winners,” leading to
corruption
• The cost of imports go up, hurting consumers
• The market is distorted, mislocating resources, and giving firms and
workers a false sense of security

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CHAPTER 4
1. Discuss how issues of culture, language, and slang would affect marketing
programs for Electrolux refrigerators in international markets.
Many culture feature patterns in which women are the primary, if not only,
household shoppers for food. In cities, living space are often quite small. A
refrigerator must be adapted to fit in a tiny space. The company has also
introduced a refrigerator that keeps ice frozen for up to six hour during a blackout
for regions that have electricity infrastructure problems.
2. How might religious differences influence the type of refrigerator to be sold
as well as its size in international markets?
Many religions dictate that individuals fast at certain times or certain days.
The fast may last from dawn until dusk, or take place during a religious holiday
or festival. Storing food for the time when the person is allowed to eat becomes a
consideration in selecting a refrigerator.
3. How would topography influence the production and sale of refrigerators by
Electrolux?
Shopping habits are tied to both dining habits and to size of living quarters.
In Europe, it is not unusual for a family to purchase only one or two days, worth
of dining supplies at any given time, shopping daily a local market. Needs for a
refrigerator are relatively small, and the unit purchase reflects this daily culture
event , in which socialization becomes large part of the shopping event.
Americans, in contrast, often shop at large retailers and need a large space for a
refrigerator that can store large, less frequent purchases.
4. What potential market segments can you identify from the information
provided in this case?

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