Sunday, December 29, 2019
Spaceship Earth - More than a Disney Attraction
Visionary and designer, poet and engineer, R. Buckminster Fuller believed that we must work together as a crew if we are to survive on our planet, spaceship earth. How did the dreams of a genius turn into a Disney World attraction? When Buckminster Fuller (1895-1983) conceived the geodesic dome, he dreamed that it would house humanity. Constructed of a complex framework of self-bracing triangles, the geodesic dome was the strongest and most economical structure ever designed for its time, first patented in 1954. No other form of enclosure covered so much area without internal supports. The larger it is, the stronger it becomes. Geodesic domes have proven durable in hurricanes that have flattened traditional homes. Whats more, geodesic domes are so easy to assemble that an entire house can be built in a single day. Spaceship Earth at Disney World The enormous ATT Pavilion at Epcot in Disney World is perhaps the worlds most famous structure modeled after Fullers geodesic dome. Technically, the Disney pavilion isnt a dome at all! Known as Spaceship Earth, the Disney World attraction is a full (although slightly uneven) sphere. A true geodesic dome is hemispherical. However, theres no question that this Disney icon is Buckys brainchild. EPCOT was envisioned by Walt Disney in the 1960s as a planned community, an urban development of the future. Disney allotted 50 acres of his newly purchased Florida swampland to be what I remember to be called an Environmental Prototype Community of Tomorrow. Disney himself presented the plan in 1966, explaining the Celebration-like development as an Experimental Prototype Community of Tomorrow, a climate-controlled bubble community, with, perhaps, a geodesic dome atop. The dream was never realized at Epcotââ¬âDisney died in 1966, shortly after he presented the master plan and shortly before Buckminster Fuller had great success with Biosphere at Montreals Expo 67. After Disneys death, amusement prevailed, and living under a dome transformed into being entertained inside a sphere representing Spaceship Earth Built in 1982, Spaceship Earth at Disney World encloses some 2,200,000 cubic feet of space inside a globe that is 165 feet in diameter. The outer surface is composed of 954 triangular panels made of a polyethylene core sandwiched between two anodized aluminum plates. These panels are not all the same size and shape. Geodesic Dome Homes Buckminster Fuller had high hopes for his geodesic domes, but the economical designs didnt catch on the way he envisioned. First, builders needed to learn how to waterproof the structures. Geodesic domes are made up of triangles with many corners and many seams. Eventually builders became skilled in geodesic dome construction and they were able to make the the structures resistant to leaks. There was another problem, however. The odd shape and appearance of geodesic domes proved to be a hard-sell for homebuyers used to conventional houses. Today, geodesic domes and spheres are widely used for weather stations and airport radar shelters, but relatively few geodesic domes are built for private homes. Although you wont often find a one in a suburban neighborhood, geodesic domes do have a small but passionate following. Scattered around the world are determined idealists, building and living in the efficient structures Buckminster Fuller invented. Later designers followed in his footsteps, creating other types of dome housing such as sturdy and economical Monolithic Domes. Learn More: Movies About Famous Architects, Including Buckminster FullerWhat is a Geodesic Dome?From our architecture glossary, illustration and definition of the geodesic dome, conceived by Buckminster Fuller.Build A Geodesic Dome ModelStep by step instructions, with diagrams, by Trevor Blake.Buckminster Fuller: BiographyFast facts about the life and works of Buckminster Fuller.Buckminster Fuller: InventionsAn extensive collection of resources from your Inventors Expert.Buckminster Fuller Bibliography by Trevor Blake, 2016Walt Disneys Epcot Center: Creating the New World of Tomorrow by Richard R. Beard, 1982
Saturday, December 21, 2019
Feminism And The Second Wave Of Feminism - 1561 Words
[Stella] backs out of sight. He advances and disappears. There is the sound of a blow. Stella cries out.(Williams 3.165-8) To Stella, this is attractive. Williams A Streetcar Named Desire, published 1947 between the first wave of feminism and the second wave of feminism, portrays two polar opposite ideologies regarding feminism and masculinity. Stanley represents what a man was supposed to be prior to the re-evaluation of masculinity by the first wave of feminism; men were supposed to be assertive, aggressive, and the kings of their homes. Stella, his wife, is meant to serve as an example of how women were supposed to act and ignore the behavior of their husbands. Mitch is the polar opposite of Stanley s type of masculinity; he isâ⬠¦show more contentâ⬠¦[He seizes her arm.] Donââ¬â¢t ever talk that way to me! Pig i Polack - disgusting - vulgar - greasy! - them kind of words have been on your tongue and your sisterââ¬â¢s too much around here! What do you think you two ar e? A pair of queens? Remember what Huey Long said - Every Man is a King! And I am the King around here, so donââ¬â¢t forget it! (Williams 8.14) Stanley s anger explodes out of him here, and he directs it towards Blanche and Stella for failing to treat him with respect. This could be considered a reasonable reaction to the things the women say about him, had he not already shown many times how right they are in saying those things. In scene three during the poker game, Stanley finds himself drunk and angry because of Blanche s music on the radio. When Stanley finally has enough and throws it out the window, Stella accuses him of being a drunk animal, which inspires him to beat her offstage. Stanley himself gives reason to be called all the awful things Blanche and Stella call him. James Gilbert writes in his book, Men in the Middle: Searching for Masculinity in the 1950s, that there was a development of new cultural forms to fill the spaces vacated by older behaviors that seem les s suitable or attainable. No historical period seems better describe in these terms than the 1950s. (Gilbert 16) Considering the year of publication of the play and how unsuitable Stanley sShow MoreRelatedFeminism And The Second Wave Feminism1516 Words à |à 7 PagesAmerica from 1960s into the 1980s which was later spread into Europe and parts of Asia. Compare to first-wave feminism in which advocates sought for women suffrage, this feminist movement, which had a broader and deeper influence, focused on dealing with issues which hindered legal sexual equality, rights to reproduce as well as family roles. This feminism movement is named the Second-wave feminism. It was politically powerful and influential that it obtained significant gains including the pass ofRead MoreFeminism : The Second Wave Of Feminism1222 Words à |à 5 PagesWhat is feminism? Feminism is a definition to philosophy in which women and their contributions are valued. It is based on a social political and econo mical which is an equality for women. Itââ¬â¢s a revolution that includes women and men who who wish the world to be equal without boundaries. The evolution of the rights of women in Australia owes much to successive waves of feminism, or the women s movement. The first of these took place in the late 19th century and was concerned largely with gainingRead MoreFeminism And The Second Wave Of Feminism1351 Words à |à 6 PagesAny given person can define feminism in a different way. Some view it as a womenââ¬â¢s movement for women, by women and against men. It can also be hard to distinguish the different types of feminism when the more radical, outspoken people or organizations can overshadow the rest. In general, feminism is another way in which to view things, another lens in which to see the world. It is another platform for people to express themselves as whole individuals and become a voice for others that may otherwiseRead MoreThe Second Wave Of Feminism1594 Words à |à 7 PagesSeneca Falls Convention, one of the very first advocacies for womenââ¬â¢s rights, the Second-wave feminism in the 1960s saw itself as a movement that achieved great success in terms of womenââ¬â¢s social, economic, and political rights. The Womenââ¬â¢s Rights Movement that began in the sixties, in comparison to the first-wave feminism in the 19th centuryââ¬âwhereas many activists focused on only womenââ¬â¢s suffrageââ¬âthe second-wave feminism dealt with a broader range of issues. From education, the patriarchal system, sexualRead MoreThe Second Wave Of Feminism799 Words à |à 4 PagesThis essay examines the question, ââ¬Å"To what extent was the second wave of feminism (in the 1960ââ¬â¢s and 1970ââ¬â¢s) successful in achieving equality for women?â⬠The essay is introduced by describing why the second wave of feminism developed and the aims of this second wave of feminist. The essay is broken into two parts. The first part of the essay di scusses the impact of women s rights activist on legislation. It is argued that the second wave feminist were unsuccessful in gaining equality in terms ofRead MoreThe Second Wave Of Feminism2200 Words à |à 9 PagesThe Second Wave of Feminism Betty Friedan, feminist author of The Feminine Mystique, wrote, The problem lay buried, unspoken for many years in the minds ofâ⬠¦women. It was a strange stirring, a sense of dissatisfaction, a yearning that women suffered in the middle of the twentieth centuryâ⬠¦ Each suburban housewife struggled with it aloneâ⬠¦ she was afraid to even ask of herself the silent question ââ¬â ââ¬ËIs this all?ââ¬â¢Ã¢â¬ Authors such as Betty Friedan wrote about their struggles in novels and articles in theRead MoreFeminism And The Second Wave921 Words à |à 4 PagesUnlike the First and the Second waves the Third wave does not have a starting point or a particular moment. The period from early 1990ââ¬â¢s to present is often defined as the Third wave. This wave is considered as the ââ¬Å"backlashâ⬠of the movements and achievements made in the second wave. Many issues like Webster decision in 1989, that made a way to create abortion laws and Planned Parenthood Asso ciation of Southeastern Pennsylvania v. Casey made a law that women should get counseling before abortionRead MoreFeminism And The Second Wave1448 Words à |à 6 PagesSherlock). From womenââ¬â¢s suffrage to abortion laws feminism has evolved with contemporary battles and a variety of approaches. The ââ¬Å"First waveâ⬠of feminism in 1920 advocated womenââ¬â¢s suffrage, whereas the ââ¬Å"Second waveâ⬠targets the societal issues that women in the 21st century are facing. Betty Friedan wrote The Feminists Mystique after World War II exposing female repression and later founded the National Organization for Women (NOW) which ignited the second wave of the feminist movement. Consequently, itRead MoreSecond Wave Feminism Essay895 Words à |à 4 PagesSecond Wave Feminismââ¬â¢s Relation to Art 1. Second Wave Feminism has a direct relation to art, as the movement and its creations were directly connected to the social problems of the times. As with most modern art, artists usually turn to creating works to express their problems with society, and this is what feminists did. As the suffragist movements with First Wave Feminism were a great success, and women did have the same legal rights as men, they still interpreted society has seeing them as theRead MoreSecond- Wave Feminism Essay830 Words à |à 4 PagesHistory 2112 Second-Wave Feminism Towards the end of the twentieth century, feminist women in America faced an underlying conflict to find their purpose and true meaning in life. ââ¬Å"Is this all?â⬠was often a question whose answer was sought after by numerous women reaching deeper into their minds and souls to find what was missing from their life. The ideal second-wave feminist was defined as a women who puts all of her time into cleaning her home, loving her husband, and caring for her children
Friday, December 13, 2019
Flow over Weir Free Essays
Introduction A weir is an opening in the sidewall of a tank at top. The stream of liquid coming out the weir is known as a nappe, sheet or vein. There is no difference between a notch and weir except that the former is a small structure and has sharp edges. We will write a custom essay sample on Flow over Weir or any similar topic only for you Order Now A weir generally an overflow structure, with a broad crest, build across an open channel. The terms air and weirs are used synonymously in general. The top of weir wall over which the liquid flows is known as the sill or crest. The head under which the weir is discharging is measure from the crest to the free surface. A weir or notch is generally used for measuring the flow of liquids. In this experiment, we ar using the rectangular weir and triangle weir. Rectangular weir and triangular weir (v-notch) ore often used in water supply, wastewater and sewage system. They consists of a sharp edge plane with rectangular and triangular profile for the water flow. Broad-crested weirs can be observed in dam spillways where the broad edge is beneath the water surface across the entire stream. Flow measurement installations ith broad-crested weirs will meet accuracy requirement only if they are calibrated. objective To determine the characteristics of open channel flow over; * A rectangular notch * A triangular (v-notch) * To determine values of the discharge coefficient for both notches Method General features of the flow can be determined by direct observation. Discharge coefficient values can be determined from measurements of the height of the free surface of water above the notch base and corresponding volume flow rate Equipment In order to complete the experiment, we need a number of pieces of equipment * The F1-10 haudralics bench which allows us to measure flow by timed volume collection * The F1-13 stilling baffle The F1-13 rectangular and Vee notch * Vernier Height Gauge (supplied with F1-13) * Stopwatch * Spiril level 4 4 2 2 5 5 8 8 7 7 6 6 3 3 1 1 Figure 1: Flow over Weirs ââ¬â Figure 2: Flow over Weirs ââ¬â vee notch weir rectangular notch weir 1 1 5 5 2 2 6 6 Hydraulics BenchBasket of glass spheres 3 3 Weir channelVolumetric measuring tank 4 4 (V) Vee notch weir7 7 Rectangular weir Hook point gauge Hook Gauge and Scale8 8 There are different shapes of weirs that can be used to measure the volumetric flow rate. These shapes with their dimension are shown in fig 3 below. Figure 3: Details of weirs Technical Data The following dimension from the equipment are used in the appropriate calculation. If required these values may be checked as part of the experimental procedure and replace with your own measurements. * Width of rectangular notch, b= 0. 030 * Angle of vee notch, o=90 degree Theory Because the depth of flow above the base of notch is related to the volume flow rate through it, the notch forms a useful flow measurement device. The classical result for flow over notch are obtained by an application of the Bernoulli equation, from a point well up stream to a point just above the notch. This approach requires a number of very substantial assumptions and it yields the following results: For Rectangular Notch, the formula is given by; Qt=Cd23b(2g)H32 For Vee-notch, the formula is given by; Qt=Cd815tan(? 2)(2g)H52 Where; Qt= Volume flow rate H = height above notch base B = width of rectangular notch ? = angle of the vee in triangular notch; Cd= the discharge coefficient, which has to be determined by experiment These can be rearrange to give; Cd=3Qt2b2gH32 For rectangular notch Cd=15Qt8tan? 22gH52 Foe vee notch. Discussion. From the experiment, we are about to determine the discharge coefficient of the both rectangular and the triangular notches. The discharge coefficient for the rectangular notch are influence by its H and also its volumetric flow rate while the triangular notch are influence by its o, H and also its volumetric flow rate. From the result, we can see that the volumetric flow rate of both notches are increase. This showed show that the water outflow increase as the H increased. These is suppose to happened as, the water level increase, the Water outflow from the notch increase over the time. But from discharged coefficient, we can see that the value of both notches are not stable. This may be from the friction at the head of the notches during the starter of experiment. The friction will affect the time taken to collect 1liter of water for V-notch and 5 litre of water for the Rectangle notch. Thus it will effect the volumetric flow rate and also the discharge coefficient as the volumetric flow rate influence the value of Cd. The aim of this experiment is to determine the value of the discharge coefficient for both notches of rectangular notch and also triangular (V-notch). The discharge coefficient values can be determine from the measurements of the height of free surface of water above the notch base and corresponding volume flow rate For discharge coefficient of Rectangular Notch, the formula is given by; Cd=3Qt2b2gH32 For discharge coefficient of V-notch, the formula is given by; Cd=15Qt8tan? 22gH52 In comparison, for rectangular notch, the theoretical value of its discharge coefficient, Cd, is ââ¬âââ¬â. However, the experimental value of Cd turns out to be 2. 31. Based on experiment that we conducted, the percentage error for rectangular notch isââ¬â. This is due to some errors that ccur during experiment. For example parallax error. However, for V-notch, the theoretical value is ââ¬â, but theoretical value isââ¬â. There is not much of a difference between its theoretical value and actual value. This mean that the flow is laminar, and not much energy is loss through friction. The derivation of values are contributed by the error during handing the experiment, if we take it as overall error, most of error occurred when step of taking the height started. First, we have to careful about the height of datum. For convenience, is is advice that to take your first datum as zero. Other than that, it is also advice that th time should be taken 3 times so that we can take the average so that the error can be minimize. Besides, The theory does not put energy loss or viscosity of the water flow into consideration, but it only depends on the flow rate, the width of the notches and height of the notches. However, in reality, water currents or flow rate may not be constant all the time and it is difficult to maintain the water level height above the notches as what he want. The cross section area over the weir with flowing water at lower rates is small compare to high rates. This is because at lower flow rates, the time for collection of water varies a lot compare to higher flow rates. It require a longer time to collect a specific amount of water to measure the flow rate at lower flow rate due to viscosity of water. Moreover, energy is conserved due to slower speed of flow of water. At higher flow rates, water flowing may already have the energy to create a constant water flow. Whereas at an even higher rat, water flow is difficult to control in order for it to be in constant height above notch base because the water current is too high. How to cite Flow over Weir, Essay examples
Thursday, December 5, 2019
Chilean Wine Essay Example For Students
Chilean Wine Essay 9-503-044 REV: NOVEMBER 17, 2005 DAVID ARNOLD HOWARD STEVENSON ALEXANDRA DE ROYERE MontGras Export Strategy for a Chilean Winery In November 2001, Patricio Middleton, CEO of Vina MontGras, a $7 million Chilean winery, was driving through the Colchagua Valley to meet American journalists from Wine Enthusiast magazine. Looking at the endless vines that surrounded him, he wondered how those newly planted grapes would find a market. Chile, the worldââ¬â¢s 10th-largest wine producer, had enjoyed an export boom in the 1990s and had grown to become the fourth-largest wine exporter, its wines positioned mainly in the lower end of the fine-wines price range. (See Exhibit 1 for world wine production and exports, and Exhibit 2 for price ranges. ) MontGras, an early 1990s winery born into this boom, tackled its business entirely from the perspective of export growth. However, the international context looked gloomyââ¬âthere was projected worldwide and domestic overproduction, intensifying global competition, and ongoing consolidation in the distribution channels. Middleton had been charged with presenting to the next board meeting a five-year export strategy, consistent with the overall marketing strategy of positioning MontGras as a producer of high-quality fine wines (see Exhibit 3 for the MontGras portfolio). The winery had already achieved significant market share in Ireland and the United Kingdom, but it was focused on the United States as the key market to achieving the sales growth required by the increases in production planned by 2005. After two disappointing experiences with U. S. istributors, Middleton had little time left to close a new distribution agreement for 2002. He had initiated conversations with two potential distributors that had diverging views regarding the positioning of MontGras, and this raised fundamental strategic dilemmas. Should they focus on volume and stick to the ââ¬Å"value for moneyâ⬠proposition that had underpinned the success of Chilean wines abroad, or should they advocate a margin strategy, based on the fact that MontGras was producing high-quality wine? The picture was complicated by an unanticipated offer to participate in a U. K. supermarket promotion that would certainly boost volumes, but at reduced margins. In addition, he had the opportunity to invest in a joint-marketing effort undertaken by the whole Chilean wine industry designed to upgrade the image of the country and its wines abroad. What would MontGras gain from such a campaign? How would it impact the marketing strategy and budget? Those were some of the questions that had to be answered before the company formulated the export strategy. ____________________________________________________________ ___________________________________________________ Professors David Arnold and Howard Stevenson and Latin American Research Center Senior Researcher Alexandra de Royere prepared this case with the assistance of Professors Matko Koljatic and Andres Ibanez of Pontificia Universidad Catolica de Chile. HBS cases are developed solely as the basis for class discussion. Certain data have been disguised. Cases are not intended to serve as endorsements, sourc es of primary data, or illustrations of effective or ineffective management. Copyright à © 2002 President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1-800-545-7685, write Harvard Business School Publishing, Boston, MA 02163, or go to http://www. hbsp. harvard. edu. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any meansââ¬âelectronic, mechanical, photocopying, recording, or otherwiseââ¬âwithout the permission of Harvard Business School. Copying or posting is an infringement of copyright. [emailprotected] harvard. edu or 617-783-7860. 503-044 MontGras The Global Wine Industry The global wine industry had been transformed in the 1980s by the entry of new producers from outside Europe. A number of large ââ¬Å"New Worldâ⬠producers had challenged traditional European practices in both production and marketing and had enjoyed considerable success. Nevertheless, the industry remained fragmented, with the largest player, Californian EJ Gallo, accounting for 1. 5% worldwide market share. 1 The industry was also in transition at the consumer and distribution levels. Old World versus New World The Old World wine industry, centered on France, Italy, Spain, Portugal, and Germany, was characterized by long-standing traditions of wine production, industry fragmentation, high levels of regulation from production to labeling and marketing, and strong domestic markets. Most Old World wines were made from a blend of different grapes and were named after the growing regions themselves, such as Bordeaux, Chianti, or Rioja, which resulted in considerable complexity of designationââ¬âfor example, the French regulatory system included 450 different apellations dââ¬â¢origine controlees (AOCs, or registered origin names). The Old World philosophy of wine production was based on the importance of terroir (terrain), which assumed that every vineyard was unique because of differences including soil, microclimate, topography, and the skill and practices of the winemaker. The New World wine industry, dominated by Australia, the United States, South Africa, Chile, and Argentina, was more concentrated and more focused on exports. In addition, the lack of stringent regulation in the New World had spurred innovation in production processes and a more scientific approach to operations. Compared to the European wine regions, these producers were located in hotter and less variable climates and so enjoyed more regular harvests that produced more consistent vintages. New World wines were usually single grape rather than blends and so were often designated by grape variety (ââ¬Å"varietals,â⬠such as cabernet sauvignon or merlot) rather than by place of origin. The New World wine industry also differed in its approach to marketing, with several large players supporting varietals with substantial promotional budgets to create international brands. Weââ¬â¢ve converted from being a cottage industry into a competitive consumer luxury goods industry,â⬠commented Californian R. Michael Mondavi, chairman of Robert Mondavi Corp. , the worldââ¬â¢s ninth-largest winemaker with more than $500 million in annual sales. 2 Drink Less, Drink Better At the consumer level, consumption of table wine (below $5 retail price) was in decline, while consumption of fine wine ( above $5) was increasing. There was also a relative shift in world wine consumption from traditional wine-producing countries to import-dependent countries, driven by both declining per capita consumption in traditional producer countries such as France, Italy, and Argentina and increasing per capita consumption in markets such as the United Kingdom, the United States, Scandinavia, and emerging wine markets such as Japan (see Exhibit 4 for main consumers and 1 Private presentation from Vina Santa Rita on the wine industry, slide number 9, 2001 ( information in table provided by Rabobank International). William Echikson in Bordeaux, with Frederik Balfour in Sydney, Kerry Capell in London, Linda Himelstein in San Mateo, and Gerry Khermouch in New York, ââ¬Å"Wine war. Savvy New World Marketers are devastating the French wine industry,â⬠BusinessWeek Online, p. 2, http://www. businessweek. com/magazine/content/01_36/b3747001. htm, October 22, 2002. 2 Copying or posting is an infringement of copyright. [ema ilprotected] harvard. edu or 617-783-7860. MontGras 503-044 Exhibit 5 for main importers). In addition, the publicity accorded the ââ¬Å"French Paradoxâ⬠3 spurred a change in consumer preference toward red wine (70% of worldwide consumption in 2000). The world wine business was valued at $150 billion in consumer value and at $60 billion in wholesale value. 4 International wine trade had grown at a 4. 3% compound annual rate between 1995 and 1999. However, during the same period, trade volume growth from the New World countries reached an 18. 3% compounded annual rate,5 as the spread of fine-wine drinking beyond the upper class created a market for American, Australian, and Chilean wines mainly focused on light, fruity flavors of low-price fine wine. World Market Scenario in 2001 The wine industry was entering a period of grape oversupply. The World Wine Report projected a yearly increase of consumption of less than 1% up to 2006. 6 Despite a reduction in planted areas in the Old World, increases in the New World countries would generate an estimated worldwide overproduction of 2,080 million gallons7 by 2006. 8 David Combe, a former Australian trade commissioner and wine industry executive, predicted that the wine industry would be marked by fierce competition, leading to a drop in overall prices. Combe also quoted a winemaker at NeibaumCoppola, one of Californiaââ¬â¢s prestige wineries, as saying, â⬠Guys who used to sell wine easily for $50 a bottle will find things going sour. . . . Before long, I am certain that youââ¬â¢ll see wine that used to sell for $40 going for $30. â⬠9 Another trend was the growing concentration in distribution. According to the Wine Institute (the Californian wine trade organization), the number of wine wholesalers in the United States had shrunk by close to 75% between 1963 and 2000,10 and about one-third of all wines were sold through just five of them. 1 Distribution concentration was even greater in the United Kingdom, where most wines were no longer bought in specialty liquor stores but in supermarkets, which now accounted for 60% of wine volume. Supermarket purchasing executives favored suppliers that could provide large volumes and contribute to marketing budgets, and they preferred to deal with a small number of 3 ââ¬Å"The French Paradoxâ⬠refers to the coincidence in France of lower-than-average mortality rates from cardiovascular disease and higher-than-average consumption of saturated fats, such as butter and cheese. In 1991, before 35 million American TV viewers, Doctors Curt Ellison and Serge Renaud presented research findings that attributed this to the beneficial effects of the higher-than-average consumption of red wine. Red wine sales jumped dramatically after the airing. 4 ââ¬Å"Wine Business. Drivers are reshaping the industry,â⬠Food and Agricultural Review, Rabobank International, October 2002, p. 3. 5 Private presentation from Vina Santa Rita on the wine industry, slide number 9, 2001 (information in table provided by Office International de la Vigne et du Vin, 2001). 6 ââ¬Å"Strategic Vision of the Chilean Viticulture Industry and Strategic Plan for Vines of Chile 2002ââ¬â2006,â⬠Interbrand, October 2001, p. 10. 7 1 gallon = 3. 85 liters = 5 bottles of 750 ml = 0. 43 cases ( of 12 bottles of 750 ml). 8 ââ¬Å"Strategic Vision of the Chilean Viticulture Industry and Strategic Plan for Vines of Chile 2002ââ¬â2006,â⬠Interbrand, October 2001, p. 10. 9 John Schreiner, ââ¬Å"The Barbarians are at the gates,â⬠http://www. newssgurus. com/index. cfm? do=display_articles stories=4722, article number 5043, October 10, 2001. 10Matt Kramer, ââ¬Å"Wines Changing Landscape,â⬠http://www. winespectator. om/Wine/Main/Feature_Basic_Template/ 0,1197,1078,99. html, November 1, 2001. 11 Barry Bedwell, ââ¬Å"Wines Vines: Grapes Supply Trends Has the Tide Turned? â⬠http://www. findarticles. com/cf_dls/ m3488/3-81/60904325/p1/article, October 23, 2002. 3 Copying or posting is an infringement of copyright. [emailprotected] harvard. edu or 617-783-78 60. 503-044 MontGras wholesalers offering a comprehensive selection of wines from around the world. The consequent difficulty experienced by small and medium-sized wineries in accessing distribution had resulted in a number of alliances with larger players. There were, however, different opinions on where these trends would lead. The Australian wine industry, in a document called ââ¬Å"Strategy 2025,â⬠forecast: Global product branding with multi-variety and multi-country sourcing will develop, but on a micro-scale there will be a paradoxical interest in premium wines with a specific regional and sub-regional identity. Globalization also will see the widespread extension of wine company alliances and joint ventures across national boundaries. . . The expectation is that while the volume of wine sales will drop (by 2025), the value of the world wine market will rise as consumers demonstrate a willingness to pay more for consistently higher quality wines. 12 The Australian wine industry was often cited within the trade as the role model for transforming an agricultural commodity into a quality, branded-image product. In order to secure a growing share of the international wine market, the Australian wine industry, which enjoyed cons iderable government support in its export drive, undertook a five-year strategic-planning process. Its latest report concluded that the Australian industryââ¬â¢s future lay in branded wine products, reflecting the distinctiveness of variety, region, and producer and aimed at maximizing the advantages of wine in capturing complementary business growth in tourism, food, and lifestyle products. Chile Government and Economy Stretching 2,666 miles north to south between the Pacific coast of South America and the Andes Mountains, Chile was colonized by the Spanish in 1536 and formed its first independent government in 1810. In the mid-1970s, the military regime of Augusto Pinochet pioneered trade liberalization in Latin America, eliminating nontariff barriers and simplifying Chileââ¬â¢s tariff structure to a single import tariff rate. Successive democratic governments, restored in 1990 after 16 years of military dictatorship, maintained these liberal economic policies in view of their success in promoting economic growth. In 2000, goods and services exports accounted for 32% of gross domestic product (GDP). The largest copper, fruit, and farmed-salmon exporter in the world and a growing player in the international wine trade, Chile was negotiating with the United States and the European Union free-trade agreements that it hoped to conclude by 2002ââ¬â2003. The population of Chile in 2001 was approximately 15 million (see Exhibit 6 for country macroeconomic data). The Chilean Wine Industry Chile was the oldest wine producer in the New World. Through four centuries its optimal natural conditions for grapevine production had attracted many migrant European winemakers. Because of the natural barriers surrounding the country (the Pacific Ocean to the west, the Atacama Desert to the north, the Andes to the east, and Antarctica to the south), Chile had been the only country not to 12 Wine Titles Web page, http://www. winetitles. com. au/strategy2025/2025-6. html, November 8, 2001, p. 1. 4 Copying or posting is an infringement of copyright. [emailprotected] harvard. edu or 617-783-7860. MontGras 503-044 suffer from the phylloxera epidemic that swept the vineyards of the world in the mid-1800s. 3 The three main wine-growing regions of Chile, shown in Exhibit 7, enjoyed a temperate Mediterranean climate of warm days, cold nights, and well-defined seasons. For most of the twentieth century, Chile had produced low-quality wines of blended grapes, with the planting of new vines and the building of new wineries inhibited by protectionist laws. Deregulation in the mid-1970s soon led to new plantings and to a technical upgrading led by the Spanish entrepreneur Miguel Torres. Soon, many other vintners followed him, improving planting and irrigation and incorporating stainless steel tanks and French oak barrels. Production volumes soared until the crisis year of 1983, when overproduction and a significant reduction in domestic consumption produced a sharp decline in prices. 14 Middleton recalled: The crisis led to industry consolidation. Prior to the crisis, there were 60 to 80 wineries. Most of the small players used to sell bulk wine to larger wineries that bottled it, branded it, and distributed it under their own labels. The number of wineries fell to 15 in 1990, as the large players bought the smaller ones and others went bankrupt. This also led to crop replacement and a drop in vine acreage. The Export Boom of the 1990s By the mid-1980s, Chilean wineries, many now under foreign ownership or management, started to produce higher-quality varietal wines for export. Middleton explained: At that time, focusing on exports was a matter of survival because of domestic overproduction. Selling wine in Chile was not profitable anymoreââ¬âthe price of a liter of water was higher than the price of a liter of bulk wine. Compared with the local consumer, who was mainly buying inexpensive low-quality wine, the foreign consumer was more sophisticated and had greater buying power and was therefore consuming finer wine. . . It took around five years for the industry to upgrade its production process, adapt its style of wines, and improve marketing techniques such as labeling, by which time it could compete in the export market. In 1996 to 1997, when many wineries were ready, there was a shortage of wine in California and in Australia,15 so American and Australian wine producers came to Chile to buy in bulk to make up their volumes. The price of grapes went up 400% between 1992 and 1998. This drove people to continue planting in Chile. Matias Elton, general manager of San Pedro, the second-largest Chilean winery, recalled that other markets also became attractive export destinations for Chilean wineries: In 1998, Chile benefited from the boom of the Japanese market, where consumers were ready to pay high prices for good wine. Some Chilean wineries stopped supplying some of their existing customers in order to take advantage of this opportunity. But then the Japanese market contracted significantly, and those wineries had difficulties restarting their previous commercial relationships, since the trust had been lost. 3 A type of small insect of the genus phylloxera that spoiled grapevines. Winemakers lived in fear of phylloxera, which could quickly decimate whole wine regions, as it had done in Europe in the 1850s. 14 The two main reasons for the decline in local consumption were a domestic recession and a significant shift from wine to beer and soft drinks. 15 The Californian shortage was due to a phylloxera outbrea k. In Australia, the change in consumer trends toward red wines had left wineries with a surplus of white chardonnay and a shortage of red wines. Copying or posting is an infringement of copyright. [emailprotected] harvard. edu or 617-783-7860. 503-044 MontGras Elton estimated that the Chilean wine industry as a whole generated operational margins of around 15% and a return on capital employed of around 7% (see Exhibit 8 for estimates of total investments in the Chilean wine industry). Chile was a low-cost producer, mainly because of land prices: the price of the land could vary from $2,000 to $20,000 per acre (unplanted), some six to 60 times cheaper than in Californiaââ¬â¢s Napa Valley. Middleton added: ââ¬Å"Chileââ¬â¢s production cost will be really unbeatable once the cost of dry goods drops to the level of other competing countries. â⬠16 Chilean wine had achieved a ââ¬Å"value for moneyâ⬠reputation across all price points, and although it was usually positioned at the low end of the fine-wine range, most commentators agreed that the quality of Chilean wines had improved constantly through the 1990s. This had partly resulted from increasing investment by French, Spanish, and Californian wineries in joint ventures with Chilean vintners, which not only increased quality but also opened new marketing channels (see Exhibit 9 for a list of foreign investments and joint ventures). By 2000, Chile exported almost $600 million of wine (up from $51. 5 million in 1990) to 90 countries on five continents (see Exhibit 10 for the breakdown of Chilean wine exports and Exhibit 11 for export destinations). The number of export vintners had grown to more than 80 in 2000, and the planted acreage of fine wine had nearly tripled since 1990 (see Exhibit 12 for the evolution and breakdown of planted area by main grape varieties). In 2000, the four top industry players accounted for 45% of exports. 17 Smaller ââ¬Å"boutiqueâ⬠wineries, such as MontGras, focused on exports of higherquality wines. The boutique wineries were represented by Chilevid, an industry association founded by six firms in 1992 with the sole objective of developing export promotions. Chilevid, of which Middleton was chairman in 2001, had 35 members, representing 10% of total Chilean wine exports. The association invested around $1 million annually in international fairs (e. g. , The London Wine Fair Trade, Vinexpo in Bordeaux), wine-tasting events, and contests. Elton, besides being general manager of Vina San Pedro, was the marketing director of Vinas de Chile, the larger and older industry association with 39 wineries representing 90% of bottled wine exports and around 90% of the domestic market. Vinas de Chile also strived to promote sales abroad, investing $1. 3 million a year in similar efforts. My hobby EssayItââ¬â¢s all down to relationships and being in the system. If we developed a close relationship with Tesbury, we could expect to be featured in two promotions a year and to be at or near the top of their list of Chilean suppliers. Middleton also reported that the U. K. distributor expressed mixed feelings about these promotions. Although MontGras would ship direct to Tesbury, the distributor would still receive a drop-shipment commission of 10% on the promotion volumes. While this offered a windfall in the short term, he expressed concerns about the damaging effect on the rest of the U. K. business, and Middleton also sensed a worry that deals made directly between MontGras and Tesbury would threaten the distributorââ¬â¢s position over the long run. Middleton summarized: This is tempting, but risky business. The extra volumes would transform our business in the United Kingdom, and thus our export volumes this year. The promotions would also raise our awareness, because of the press ads and in-store merchandising, and would help us competitively, since we would become one of the best-known Chilean wines. But all this would come at the expense of undermining our positioning strategy, because of the lower price points and the strong price message it gives to the market. The U. K. distributor was simultaneously developing a marketing plan for the first vintage of the flagship Ninquen wines, which would be available in the U. K. in early 2002. He proposed a ? 20,000 contract with a public relations firm to generate coverage of the new wine and was aiming at 5,000 cases in the first year, 80% of which would be in the on-trade segment. Tesbury had also agreed to take 50 cases with a retail price of ? 5. 99. This was expected to spearhead a drive into specialty stores, such as delicatessens and gift shopsââ¬âDeGras had recently been stocked in Harrodsââ¬â¢, the London department store with strong tourist traffic, at a ? 12. 99 shelf price. The U. S. Market Unlike the U. K. , the U. S. market was still fragmented at the retail level, mostly because of regulatory restrictions that stip ulated a three-tier distribution system: the producer had to sell to a state-licensed wholesaler, who had to sell to a state-licensed retailer, who was the only one allowed to sell directly to the consumer. Companies could vertically integrate from production to distribution over no more than two layers. In the case of imported wine, it had to be sold to an importer who would in turn sell it to a state-licensed wholesaler. In some states, liquor store chains were prohibited, and in some cases supermarkets and other food stores were not allowed to carry alcoholic drinks. Middleton explained: Imported wines rely on 10 markets: Florida, New York, Connecticut, New Jersey, Massachusetts, Georgia, Texas, California, Illinois, and Oregon. There are 50 to 60 wholesalers in total. However, you would have to spend two years speaking to 200 people to have a fair view of the U. S. market, since there are no big retail chains, whereas you would only need to talk to five supermarket wine buyers to understand the U. K. market. A large wholesaler can handle a portfolio of approximately 2,000 brands and have a sales force of 100 people. With such a broad portfolio, the sales force are mostly just order takers, so the importerââ¬â¢s salesperson has to visit the retailer to motivate them to place orders with the wholesaler. See Exhibit 19 on the economics of exports to the U. S. 12 Copying or posting is an infringement of copyright. [emailprotected] harvard. edu or 617-783-7860. MontGras 503-044 Previous distribution agreements in the United States MontGras had already experienced two unsuccessful partnerships in its attempts to penetrate the U. S. market. In 1996, MontGras entered a distribution agreement with a Napa Valley winery after the owner visited Chile and proposed itself as an importer. MontGras was enthusiastic, believing that the two family-owned wineries would work well together, both in distribution and in exchanging winemaking expertise. In addition, MontGras was not big enough yet to appeal to a large importer with a nationwide sales force. This Californian winery had a small national distribution operation focused on wines above $15 retail price and was already acting as an importer for wines from Australia, Argentina, and South Africa. Although the long-term focus for MontGras was in the $10ââ¬â$15 range, production was still primarily at lower value points, and so the entry strategy was built around varietals in the $6. 99ââ¬â $7. 99 range. Sales grew rapidly, and by 1998 MontGras was the distributorââ¬â¢s largest brand by volume, justifying an invitation to the entire sales force of 12 to visit Chile to learn more about MontGras. However, in June 1998, after more than two years of collaboration, the distributor changed strategy and terminated the contract abruptly. MontGras was never informed of the reason for this change, but Middleton speculated that the U. S. winery had decided to enter these lower price points with its own wines and terminated MontGras to avoid conflict of interest in sales and distribution. In 1999, after talking to several importers, Middleton set up a distribution agreement with the fine-wine division of one of the largest distributors in the United States. This distributor handled a portfolio of high-volume spirits and wines through a sales organization of 100 people, with a separate sales force of 16 focused on selling fine wines. A short while after the agreement took force, the distributor unexpectedly merged the two separate divisions, as a result of which the fine-wine sales force was converted into wine consultants to the other division. Middleton realized quickly that the sales were not moving and that the sales force did not even know that MontGras was in their portfolio. MontGras then decided to end the relationship by the end of 2000. Selecting a new U. S. partner In 2001, Middleton hired a consultant to help the winery in the selection of an importer for the U. S. market. This was a tougher challenge than in 1995, since the number of Chilean wineries exporting to the United States had increased from 25 to 65 in that period, while the number of national importers remained at about 15. In 2000, imported Chilean wines accounted for 11% of U. S. wine shipments by volume, but only 6% of dollar sales. Middleton believed that MontGrasââ¬â¢s focus on the over $10 segment would appeal to an importer, although it would mean having to compete with Californian wines. The consultant spent three full days at the winery, understanding the brand and developing potential strategies, and then together with Middleton drew up a list of criteria for selecting a partner that included the quality of its brand portfolio, the quality and size of its sales force, its commitment and ability to build the brand, and above all shared common objectives with the winery. By November, MontGras was in negotiation with two importers that showed genuine interest in the project. The first, World Wine Importers, was already representing a Chilean winery in the varietal segment but was interested in working with MontGras, especially in the reserva line. It ranked among the fastest-growing sources of premium imported wine and spirits, selling 200 different brands from seven different countries; had a 60-strong sales force; and expected 2001 revenues of around $200 million. It proposed a ââ¬Å"value for moneyâ⬠positioning to compete against Californian wines, recommended retail pricing at $7. 9ââ¬â$10. 99, and on this basis forecast volumes of 40,000 cases in the first year rising to 120,000 cases by the third year, with a forecast mix of 70% varietals and 30% reservas. The other importer, Cabo Imports, had been founded in 1978 as the importer of a single Italian wine and by 2001 had grown to a portfolio of 50 brands, with 70% of its sales still co ming from Italian imports. It sold 500,000 cases annually of its largest brand, an Italian import, and 5,000 cases of its 13 Copying or posting is an infringement of copyright. [emailprotected] arvard. edu or 617-783-7860. 503-044 MontGras smallest brand. The firm had a sales force of 35 and expected 2001 revenues of $112 million. It also already carried a lower-end Chilean brand, aiming at the $5. 99ââ¬â$6. 99 retail price point. Cabo had a different view of MontGrasââ¬â¢s potential in the United States, arguing that it was possible to raise the perception on MontGrasââ¬â¢s quality and therefore raise the price in order to maximize the return for all parties. To that end, Cabo proposed that MontGras create the position of a ââ¬Å"brand champion,â⬠a full-time MontGras employee based in the United States who would be the face of the brand for retailers and customers and would organize tastings in wine shops and promotions and incentives for the sales force. This idea was described by Middleton as ââ¬Å"creative and appealing,â⬠and he estimated that such an initiative would cost some $120,000 annually. Cabo recommended a range of retail price points from $7. 99 to $14. 99 and on this basis forecast sales of 25,000 cases in the first year increasing to 60,000 cases by year three, with an expected mix of 60% reservas and 40% varietals. In addition, Cabo was interested in Ninquen as a flagship for the line, targeting a $24. 99 retail price, at which it forecast sales of 1,500 cases by year two. MontGras had earlier in 2001 exported some sample wines for review by U. S. wine journalists, and the results had just been published. In the Wine Spectator, which used a proprietary pointsscoring system out of 100, MontGras wines had been rated between 85 and 87 and received favorable written reviews. These ratings placed them well among the higher ranks of Chilean wines and justified prices of up to $15 at retail. Marketing Challenges The export strategy had to be formulated in the context of the broader marketing objectives of MontGras. Critical to this was the establishment of Ninquen as a flagship for the brand, with the clear objective of raising the perception of quality, and thus the price, of the whole portfolio. Middleton explained: Most consumers know little about wine; to them, price serves as an indicator of quality. I think that Chilean wines that are sold for $10 a bottle at retail are much better than Californian wines sold at $15 to $25, and blind-tasting results always put us on a level with wines priced quite a bit higher. Why is the consumer ready to buy a Californian wine for $15 to $25 rather than a Chilean wine for only $10? My only answer is image, the better perception they have of the Californian wines in general. They know them better than Chilean wines. We know that for most consumers the sequence of criteria for selecting a wine is red versus white, then country, then price, then grape variety, and only then brand. And then he added: There are two ways to promote your wine: either you spend millions of dollars, like EJ Gallo, to build your brand, or you make your brand known through wine journalists and opinion leaders. Wine should be promoted like carsââ¬âyou promote your ultra-premium wine, and it has a halo effect on the whole range. That is why we are focusing right now on Ninquen. To be perceived as an ultra-premium wine, it has to be priced above $20 and has to be strong in the on-premise channel. If we are able to make Ninquen an exceptional wine that we will retail for $25 and get it known that it is as good as many bottles selling for $50, buyers and journalists will get excited. In this business, if you get good word of mouth and recommendations by wine writers, volumes can increase quicklyââ¬âconsumers are looking for guidance. We are investing lots of money to invite journalists and buyers to Chile. We invite them through Chilevid, the Vinas de Colchagua winery association, or a selected group of wineries that agreed on a specific program. 14 Copying or posting is an infringement of copyright. [emailprotected] harvard. edu or 617-783-7860. MontGras 503-044 Pricing strategy was the critical element of positioning, and there were concerns that the value positioning of all Chilean wines was undermining MontGrasââ¬â¢s value proposition. While Ninquen was a vehicle for achieving higher prices, Middleton was mindful that the international and local oversupply of grapes would put pressure on prices, especially at the lower end of the fine-wine segment. In addition, within the icon and ultra-premium segment, the recession that started in 2001 in the United States could drive consumers to trade down to less expensive wines. That could be an opportunity for the labels and the MontGras reserva lines if they were priced aggressively. Middleton had already conducted a price elasticity test in the United Kingdom. The price of one carmenere reserva wine had been increased from ? 5. 99 to ? 7. 49 per bottle in a chain store over four months, and no impact on volume was recorded. Based on this, Middleton estimated that MontGras could achieve an average price of $35 free on board (FOB) per case in five years. However, he was still analyzing whether he could reach a higher target. He recalled the case of Montes, a Chilean boutique winery that enjoyed an average FOB price of $44 per case. The business strategy of Montes was somewhat different. It sold 220,000 cases a year, with a sales force of nine people covering 45 countries, since the potential volume per country at this price level was more modest. Positioning Chilean Wines Middleton also had to make a recommendation to the board regarding the initiative of Vinas de Chile to create an industry plan to build an image around Chile and the ââ¬Å"Wines of Chile. â⬠He agreed that the Chilean wine industry lacked a proper image, and he pondered how the investment in an industry plan would add value to MontGrasââ¬â¢s strategy. He recalled that the guest speaker at a recent dinner, a business school professor who had investigated the wine industry, expressed concern about building an image around ââ¬Å"Wines of Chile,â⬠since it raised the risk of standardizing the image of all Chilean wines. Certainly, while Chilevid members exported at an average $26 per case and were enjoying 24% annual growth, Vinas de Chile members achieved an average $21 and were growing at only 4%. Nevertheless, they represented 85% of all exports and therefore drove the perception of Chilean wines abroad. Once Middleton ended up his meeting with the Wine Enthusiast journalists, he had to work on MontGrasââ¬â¢s export strategy. He knew that the MontGras shareholders had differing views on the issue. How should they enter the U. S. market? With which distributor? Should they focus on a margin strategy or look for volume, or could they achieve both simultaneously? How would the ââ¬Å"Wines of Chileâ⬠campaign impact MontGras strategy? Middleton could not delay the reentry to the U. S. market; however, he wondered whether the search for a joint-venture partner should not be a priority. 15 Copying or posting is an infringement of copyright. [emailprotected] harvard. edu or 617-783-7860. 503-044 MontGras Exhibit 1a World Wine Production 1996 1,560. 962 1,528. 067 790. 426 490. 802 329. 706 219. 718 224. 692 175. 096 246. 480 99. 416 1,463. 860 7,129. 225 1997 1,432. 548 1,314. 641 863. 642 680. 576 351. 008 210. 979 220. 865 160. 519 153. 768 118. 279 1,463. 122 6,969. 947 Year 1998 1,411. 046 1,485. 650 785. 824 533. 000 329. 508 200. 265 281. 680 192. 802 93. 080 142. 344 1,475. 476 6,930. 675 1999 1,636. 310 1,509. 893 849. 264 539. 500 413. 080 207. 179 319. 435 221. 297 204. 334 124. 969 1,489. 783 7,515. 044 2000 1,553. 266 1,405. 16 1,086. 530 650. 000 325. 962 285. 551 262. 102 222. 405 174. 031 173. 525 1,530. 438 7,669. 526 % Share 2000 20% 18% 14% 9% 5% 4% 3% 3% 2% 2% 20% 100% 1 2 3 4 5 6 7 8 9 10 Wine Production (millions of gallons) France Italy Spain United States Argentina South Africa Germany Australia Portugal Chile Others Total Source: Adapted from Food and Administration Organization of the United Nati ons (FAO). Exhibit 1b World Wine Exports in Volume 1996 336. 365 348. 787 174. 962 52. 876 33. 714 41. 982 64. 092 50. 630 31. 193 32. 597 257. 567 1,424. 765 1997 391. 682 326. 304 225. 651 83. 659 40. 142 53. 053 57. 59 63. 689 26. 550 35. 527 274. 002 1,578. 218 Year 1998 425. 479 394. 967 266. 482 90. 909 50. 025 65. 523 57. 875 58. 440 27. 982 30. 996 237. 952 1,706. 630 1999 412. 834 476. 317 217. 080 91. 254 56. 030 68. 223 60. 198 49. 499 21. 128 25. 213 159. 393 1,637. 169 2000 385. 453 381. 558 202. 099 104. 611 80. 830 72. 005 62. 774 48. 763 44. 200 23. 951 157. 836 1,564. 080 % Share 2000 25% 25% 13% 7% 5% 5% 4% 3% 2% 1% 10% 100% 1 2 3 4 5 6 7 8 9 10 Wine Exports (millions of gallons) France Italy Spain Chile Australia United States Germany Portugal South Africa Argentina Others Total Adapted from FAO. Source: Exhibit 1c World Wine Exports in Value 1996 4,824. 017 2,130. 132 1,094. 021 429. 337 293. 743 304. 491 537. 378 485. 185 186. 713 67. 678 1,161. 044 11,513. 739 1997 5,143. 070 2,098. 590 1,130. 678 535. 808 423. 990 394. 632 523. 396 413. 807 189. 307 128. 250 1,420. 822 12,402. 350 Year 1998 5,890. 723 2,365. 195 1,286. 912 611. 429 510. 422 512. 140 528. 281 435. 238 184. 969 152. 482 1,341. 429 13,819. 220 1999 6,101. 171 2,463. 772 1,313. 676 793. 650 523. 652 518. 921 520. 075 436. 314 121. 965 141. 007 1,176. 021 14,110. 224 2000 5,044. 48 2,229. 584 1,126. 106 903. 594 576. 822 530. 596 468. 958 352. 331 244. 753 148. 771 1,100. 856 12,726. 719 % Share 2000 40% 17% 9% 7% 5% 4% 4% 3% 2% 1% 8% 100% 1 2 3 4 5 6 7 8 9 10 Wine Exports (US$ millions) France Italy Spain Australia Chile United States Portugal Germany South Africa Argentina Others Total Adapted from FAO. Source: 16 Copying or posting is an infringement of copyright. [emailprotected] harvard. edu or 617-783-78 60. MontGras 503-044 Exhibit 2 Price Ranges in the United States High Icon Price range:US$50 volume market share:
Thursday, November 28, 2019
7ps of Airtel Essay Example
7ps of Airtel Essay Bharti Airtel Limited, commonly known asà Airtel, is an Indian multinationalà telecommunicationsà Services Company headquartered inà New Delhi, India. It operates in 20 countries across South Asia, Africa, and theà Channel Islands. Airtel hasà GSM networkà in all countries in which it operates, providingà 2G,à 3Gà andà 4Gà services depending upon the country of operation. Airtel is the worldsà third largest mobile telecommunications companyà with over 269 million subscribers across 150 countries as of August 2013. It is theà largest cellular service providerà in India, with 190. 1 million subscribers as of June 2013. Airtel is the third largest in-country mobile operator by subscriber base, behindà China Mobileà andà China Unicom. Airtel is the largest provider ofà mobile telephonyà and second largest provider ofà fixed telephonyà in India, and is also a provider ofà broadbandà and subscription televisionà services. It offers its te lecom services under theà airtelà brand, and is headed by Sunil Bharti Mittal. Bharti Airtel is the first Indian telecom service provider to achieveà Ciscoà Gold Certification. It also acts as a carrier for national and international long distance communication services.The company has a submarine cable landing station at Chennai, which connects the submarine cable connectingà Chennai and Singapore. 7pââ¬â¢s of Marketing 1. Product Airtel offers product for both the individual and business. For Individual * Airtel Pre-paid Plans * Airtel Post-paid Plans * Broadband * Digital TV * Airtel iphones * Blackberry wireless handheld * IPTV * HD TV * HD recorder * Value Added Service(VAS) The different value added services provided by Airtel are * Instant balance enquiry * 24Hr Recharge Facility * Caller Line Identification * Call divert, Call wait ;amp; Call hold Multimedia messaging service( MMS) * Airtel Live Portal * SMS Based Information Service * Hello Tunes ;amp; Ring Ton es * Voice Mail Service * Easy Post-paid bill collection * Gifting of Ring Tones ;amp; Hello Tunes * GPRS For Business Data and IP * DDoS Detection ;amp; Mitigation service * Premium Enterprise Internet * Managed Internet service * Multi-horned Internet service * Internet Leased Port Conferencing * Audio Conferencing service * Video Conferencing service * Web Conferencing service 2. Price Airtel has realized that the Iindan market is price sensitive.Therefore it has come up with various innovative tariff schemes to take needs of different category of customers. The pricing strategies of Airtel are * Customer based pricing strategies * Flexible pricing mechanism * Controlled by TRAI Bharti Airtel offers it subscribers intra-network tariffs at as low as 30 paise per minute. It has also introduced attracting pricing in its broadband segment. 3. Place The Airtel outlets are being situated in various places in India known as ââ¬Å"Customer Relationship Centerâ⬠. Airtel Customer Tou ch Points. Distributors likeE. g. paan shops, grocery shops, chemists, outlet etc. 4. Promotion Airtel has been dependent on tactical advertising. It has introduced most number of celebrities for advertisements. The list includes Sachin, Shahrukh khan, A. R. Rehman, Saif Ali Khan, Kareena Kapoor etc. Large scale print and video advertising. In 2002 Airtel got its Signature tune from A. R. Rahman, this signature tune is perhaps the most downloaded tune in India. My Airtel my offer was promoted to communicate the value added service and also to choose the best available service.Provides innovations such as Bollywood movie premiers, music services such as ring back tones ;amp;many more. Friendz pre-paid connection for youth, Ladies Special plan, Seniors plan. Executives corporate plan(First to give prepaid in this category). Special discounts in calling rates ;amp; sms services. Providing wallpapers and screensavers on website. The current promotion are 1 paisa/second, special bonus, a irtel bundl, power recharge 65, maximus m220bundle offer, u tab, night talk offer ,etc. 5. Physical Evidence Sim cards, recharge vouchers. Bills. Digital TvBroadband. Service Outlets. 6. People Total employees 25,616(Bharti Airtel Consolidated) Dedicated and passionate workforce. One of the best customer supports. Have won 2nd Best employer award in 2004. 7. Process The process is very easy and the customer can avail it very easily. Go to AirtelShop Choose a service (Say Postpaid connection) Pay the appropriate fees Take the Respective service (Like SIM Card in this case) Avail the facilities Give the feedback 121 is the customer support no. which can be dialed from anywhere in india. 7ps of Airtel Essay Example 7ps of Airtel Essay Bharti Airtel Limited, commonly known asà Airtel, is an Indian multinationalà telecommunicationsà Services Company headquartered inà New Delhi, India. It operates in 20 countries across South Asia, Africa, and theà Channel Islands. Airtel hasà GSM networkà in all countries in which it operates, providingà 2G,à 3Gà andà 4Gà services depending upon the country of operation. Airtel is the worldsà third largest mobile telecommunications companyà with over 269 million subscribers across 150 countries as of August 2013. It is theà largest cellular service providerà in India, with 190. 1 million subscribers as of June 2013. Airtel is the third largest in-country mobile operator by subscriber base, behindà China Mobileà andà China Unicom. Airtel is the largest provider ofà mobile telephonyà and second largest provider ofà fixed telephonyà in India, and is also a provider ofà broadbandà and subscription televisionà services. It offers its te lecom services under theà airtelà brand, and is headed by Sunil Bharti Mittal. Bharti Airtel is the first Indian telecom service provider to achieveà Ciscoà Gold Certification. It also acts as a carrier for national and international long distance communication services.The company has a submarine cable landing station at Chennai, which connects the submarine cable connectingà Chennai and Singapore. 7pââ¬â¢s of Marketing 1. Product Airtel offers product for both the individual and business. For Individual * Airtel Pre-paid Plans * Airtel Post-paid Plans * Broadband * Digital TV * Airtel iphones * Blackberry wireless handheld * IPTV * HD TV * HD recorder * Value Added Service(VAS) The different value added services provided by Airtel are * Instant balance enquiry * 24Hr Recharge Facility * Caller Line Identification * Call divert, Call wait ;amp; Call hold Multimedia messaging service( MMS) * Airtel Live Portal * SMS Based Information Service * Hello Tunes ;amp; Ring Ton es * Voice Mail Service * Easy Post-paid bill collection * Gifting of Ring Tones ;amp; Hello Tunes * GPRS For Business Data and IP * DDoS Detection ;amp; Mitigation service * Premium Enterprise Internet * Managed Internet service * Multi-horned Internet service * Internet Leased Port Conferencing * Audio Conferencing service * Video Conferencing service * Web Conferencing service 2. Price Airtel has realized that the Iindan market is price sensitive.Therefore it has come up with various innovative tariff schemes to take needs of different category of customers. The pricing strategies of Airtel are * Customer based pricing strategies * Flexible pricing mechanism * Controlled by TRAI Bharti Airtel offers it subscribers intra-network tariffs at as low as 30 paise per minute. It has also introduced attracting pricing in its broadband segment. 3. Place The Airtel outlets are being situated in various places in India known as ââ¬Å"Customer Relationship Centerâ⬠. Airtel Customer Tou ch Points. Distributors likeE. g. paan shops, grocery shops, chemists, outlet etc. 4. Promotion Airtel has been dependent on tactical advertising. It has introduced most number of celebrities for advertisements. The list includes Sachin, Shahrukh khan, A. R. Rehman, Saif Ali Khan, Kareena Kapoor etc. Large scale print and video advertising. In 2002 Airtel got its Signature tune from A. R. Rahman, this signature tune is perhaps the most downloaded tune in India. My Airtel my offer was promoted to communicate the value added service and also to choose the best available service.Provides innovations such as Bollywood movie premiers, music services such as ring back tones ;amp;many more. Friendz pre-paid connection for youth, Ladies Special plan, Seniors plan. Executives corporate plan(First to give prepaid in this category). Special discounts in calling rates ;amp; sms services. Providing wallpapers and screensavers on website. The current promotion are 1 paisa/second, special bonus, a irtel bundl, power recharge 65, maximus m220bundle offer, u tab, night talk offer ,etc. 5. Physical Evidence Sim cards, recharge vouchers. Bills. Digital TvBroadband. Service Outlets. 6. People Total employees 25,616(Bharti Airtel Consolidated) Dedicated and passionate workforce. One of the best customer supports. Have won 2nd Best employer award in 2004. 7. Process The process is very easy and the customer can avail it very easily. Go to AirtelShop Choose a service (Say Postpaid connection) Pay the appropriate fees Take the Respective service (Like SIM Card in this case) Avail the facilities Give the feedback 121 is the customer support no. which can be dialed from anywhere in india.
Sunday, November 24, 2019
Ducts and Dukes Lead the Way
Ducts and Dukes Lead the Way Ducts and Dukes Lead the Way Ducts and Dukes Lead the Way By Mark Nichol The Latin verb ducere, meaning ââ¬Å"lead,â⬠is the basis of many English words pertaining to action, development, and movement. This post lists and defines these words. To abduct (literally, ââ¬Å"lead awayâ⬠) is to kidnap or seize someone; one who does so is an abductor, and the action is called abduction. Abduce is a synonym for the medical sense of the word; abduce and abduct both describe drawing a body part away from another. (Abductor is used as a noun in this sense as well.) To adduce (literally, ââ¬Å"lead toâ⬠), by contrast, is to draw a body part toward the axis of a limb or the center of the body. It also means ââ¬Å"provide an example, proof, or reason to support a proposition.â⬠(Abduction and adductor are the noun forms, and abducent and adducent are the adjectives.) A duct is a channel or a conduit; aqueduct literally means ââ¬Å"water channel.â⬠(Duct tape, sometimes, as a result of a mishearing, called ââ¬Å"duck tape,â⬠is so named because it was developed for repairing ducts.) Something that is ductile is capable of being beaten thin, bent, or pulled (as in the case of certain metals), of being formed anew (as in the case of other malleable materials), or of being easily influenced or lead (as in the case of people). To conduct is to lead to a particular result, though conduce is sometimes used for this meaning. Something that leads is a conductor, as in the case of a substance that carries heat or another form of energy or a person who is the head of an orchestra or an official on a train. The act is conducting in the sense of carrying energy is called conduction. To deduce is to figure out by reasoning or to trace; a deduction is the result. Deduct is synonymous with deduce, but it also means ââ¬Å"subtract.â⬠Induce and introduce both mean ââ¬Å"lead into,â⬠but the former pertains to influence, persuasion, or persuasion, or to forming or producing. (In the sense of producing an electrical current, the verb form is induct.) Introduction, by contrast, refers to the act of presenting, especially for the first time, or to inserting or instituting something. To produce is to develop; something produced is a product, although produce is employed to refer to fruits and vegetables; production is distinguished from product in that it refers to the creation of goods or of artistic works. To reduce is to diminish the amount of something, and to seduce is to literally lead away or astray, either in a physical, sexual sense or in the figurative sense of ââ¬Å"persuade.â⬠Less common words derived from ducere include circumduction (ââ¬Å"circular movement of an extremity or limbâ⬠), subduction (ââ¬Å"movement of the edge of one tectonic plate below anotherâ⬠), traduction (ââ¬Å"defamation,â⬠although it also has senses pertaining to logic and rhetoric), and transduction (ââ¬Å"transfer of energy or informationâ⬠). Words that may not be immediately apparent as belonging in the ducere family include educate (literally, ââ¬Å"lead outâ⬠); someone who educates, or teaches or trains, is an educator, and the act of teaching or training is education. (The adjectival form is educational.) Another is douche, which came to English from French by way of an Italian word for ââ¬Å"sprayâ⬠and as both a noun and a verb refers to vaginal cleansing. Duke, meanwhile, stems from the Latin word for ââ¬Å"leaderâ⬠and referred originally to a prince and later to a high-ranking nobleman. The adjectival form is ducal, the domain of a duke is a dukedom, and the wife of a duke is a duchess. (The verb and noun dock may also derive from ducere, although it may have a Germanic origin.) Want to improve your English in five minutes a day? Get a subscription and start receiving our writing tips and exercises daily! Keep learning! Browse the Vocabulary category, check our popular posts, or choose a related post below:"Because Of" and "Due To" 50 Idioms About Arms, Hands, and Fingers40 Words Beginning with "Para-"
Thursday, November 21, 2019
Gun Control Issues in the United States Research Paper
Gun Control Issues in the United States - Research Paper Example The national firearms act was the first act that restricted the rights to own guns. The guns were then provided to the people after complete background checking and assuring as if they really needed the gun for a fair use. The federal act of gun control was introduced in 1968, and as per this act, each gun is provided with a unique serial number that is held by the gun buyer. 1990sââ¬â¢ amendment then proscribes the criminals to become a gun owner and makes it essential to check the criminal record of the buyer during the sales time. Gun control opponents argue that people bearing handguns are able to defend themselves from criminal offense assuring personal safety. Whereas, the advocates of gun control suggest that increase in crime rates is an outcome of widespread ownership of the gun and ultimately bring negative consequences both in terms of private and public (Gun Control Debate 2011).à Since 1934, various federal laws have been acted out to promote federal regulation of firearms and ammunition, the constitutionality, and efficacy of which is continued to be a strong debate. Gun control proponents argue that laws and regulation to control gun ownership and holding can prohibit convicted felons, mentally challenged and other individuals who are not safe to the society to misuse guns to create harm. The advocates of gun control also suggest that accessibility of guns to these high-risk individuals can successfully be reduced by only the federal regulations and policies for gun usage. Some people even sought for extensive modifications in gun control policy such as non-police handgun possession and the registration of all firearm owners or firearms should be prohibited almost exclusively. For this prohibitive act regarding firearms, they insist that such regulation is not barred by the constitution and it does not incur any substantial social costs. Some proponents do not consider such strict policies rather they go for moderate policy alternatives suc h as the ones which would not hinder legitimate possession and transfer of firearms. The opponents of such federal policies have much stronger arguments. They refuse to accept that federal regulation can prevent firearms access by high-risk persons. They argue against the gun control acts indicating that such controls often disturb law observant citizens by creating burdens on them. Some people consider these policies as a violation of constitutional rights catered by the Second Amendment. They even give reasons for their opposition to gun control by demonstrating that they consider the widespread possession of the gun as one of the best impediments to criminal offenses and to likely despotism as well, whether through the use of guns by gangs or by the government. Some opponents may also criticize the impression of enhancing federal powers as opposed to state and police forces (Gun Control 2002). Gun control had been considered a prominent issue neither in the 2004 Presidential camp aign nor in the 2008 campaign.à Ã
Wednesday, November 20, 2019
Wreiter choice Assignment Example | Topics and Well Written Essays - 500 words
Wreiter choice - Assignment Example What could be driving these consumerism tendencies? One apparent thing is the taste! The impulse buying nature of humans is not anything new in the current society. There is a ceaseless urge to buy goods regardless of the presence or absence of money. People tend to spend money on goods such as cars and flavours, the latter the leading in consumption rate. Compulsive buying has seen our stores stocked, credit card debts amounting and a remarkably depreciated health. One could then pose such question as to what the impact of materialism and consumerism bears on the American psyche. From a psychological point of view, the urge to acquire more goods or wealth is a perfect case of discontent. Prompts arguments as if, when one is rich then the money does not make them any comfortable. Leaving the weak discrediting the materialistic aspect of life, dismissing its importance altogether (Schlosser, 561). Consumerism is likened to a culture in that many a people have adopted it as the only practice they ever experienced throughout their lives and which they cannot part with given their relationship since the origin and its entirety. Notably, consumerism has created voids in peopleââ¬â¢s lives, rendering some emptiness within them subconsciously. The advent of McDonaldization and Americanization is a factor that has come into play in shaping the consumer behaviour of the US citizens. The McDonalds, with their influence across continents, have rocked the world with its myriad flavours. It has been demonstrated that 90 per cent of the money by Americans is spent on food alone. In ââ¬Å"Why McDonaldââ¬â¢s fries taste so goodâ⬠, Schlosser notes that flavour is a critical component if one needed to realise large sale turnover. He adds that colour matters a lot as those that are brightly illuminated are tastier compared to the bland- looking foods. It not only applies to taste but also appealing factor among the eyes of the customer (Schlosser,
Monday, November 18, 2019
WHAT KIND OF COMPANIES STAND TO GAIN THE MOST FROM ENTERING INTO Essay
WHAT KIND OF COMPANIES STAND TO GAIN THE MOST FROM ENTERING INTO STRATEGIC ALLIANCE WITH POTENTIAL COMPETITORS WHY - Essay Example Strategic alliance refers to the joint decision of two firms to share a part of their resources and abilities mutually among them to acquire competitive strength in the market. In the business world, strategic alliance between firms is an increasing trend. Sometimes through these strategic alliances, firms may get monopolistic competitive position, which is not beneficial for the economy. The strategic alliance option is highly adoptive in technology based industries for which there involve huge cost for research and development and high risk of failure. Thus sharing of the technological resources facilitated through strategic alliance will helps firms to share the risk also. In industries, where cost of doing business are high, also adopt strategic alliance as a tool for reducing the operating cost by economies of scale in operation. In the period of global competition, the industries realize that through sharing of valuable resources between their competitors would contribute to th eir better market performance. The successful industries use higher level strategic alliance to improve their operational efficiency. (Strategic Alliance 2009). ââ¬Å"Strategic alliances are agreements between companies (partners) to reach objectives of a common interest. Alliances are among the various options which companies can use to achieve their goals; they are based on cooperation between companies. The description ââ¬Å"strategicâ⬠limits the field to alliances that are important to the partners and have broad horizons.â⬠(Pellicelli 2003). Strategic alliance provides capability to access the technologies and other facilities of competitors. It allows the business firms to progress rapidly by using the valuable resources of competitors. Through the alliance, new ideas about advanced products can be generated as it supports innovation. It helps to diminish the impact of risk of failure of the project by sharing it with
Friday, November 15, 2019
An Analysis On Dominos Pizza Marketing Essay
An Analysis On Dominos Pizza Marketing Essay This report focuses on the marketing activities by Pizza Hut, Dominos and Papa Johns as part of the fast food market. The report has looked at culturally diverse markets being China, India, USA and Mexico. Looking at the various cultures through an etic approach the report aim to convey the different levels of standardization and adaptation that companies have tried to establish in international markets. Through the marketing activities that have been carried out by each company respectively, this report forms a connection with cultural theories by theorists like Hofstede and Hall with the aim to establish which company is standardized or either adapted. In respect to the advertising activities, each company has been alert to meet local cultures in different countries. Eliciting responses that incorporate culture specific aspects like the Guan-xi and the Compadre in high context cultures and catering to the needs of low context cultures with increasing factual analysis in countries like USA, the selected companies have shown their high levels of local responsiveness. Through the report it is evident that have targeted their advertising to their standardized business model focusing on in house dining or a delivery system or even a standardized concept of the quality of products. Sales promotions done by these companies have brought to light the increasing elements of standardization as consumers are becoming increasingly technologically advanced in this mobile generation. Dominos has standardized its technological efforts gaining a competitive advantage giving customers the ability to see the exact location of their pizza during manufacture, customization of the pizza, online delivery etc. these companies have also been quick to gain public attention through local social media portals. Pricing affecting the level of standardization and adaptation, as this reports reflects. Affected by differing economic levels in different countries along with the stage in the product life cycle reached affecting the degree of standardization. Customer preferences and their disposable incomes also play a significant role on pricing and through the use of companies like Dominos, Pizza Hut and Papa Johns this report aims to communicate these links. With respect to the brands of the three companies the report sheds light on the different choices made by the company to maintain brand coherence and establish a meaningful relationship with their customers. With local adaptations the findings suggest branding develops a personality over time and when changed can result in negative attention. Branding when adapted correctly increases resonance the highest level in the customer based brand equity pyramid. This report also brings to mind the cultural aspects that link to websites being the initial contact point with customers and thus must be very culturally sensitive. Through the analysis it is evident that companies have adapted their websites in terms of subtle characteristics such as colour, gestures displayed, images, information provision as these affect the degree of standardization. Through this report the findings suggest that although standardization includes the benefits of economies of scale, generation of a better brand image in the global market and easier operations by the company there is an increasing need for adaptation as cultures although can be compared are greatly distinct and have to be acknowledged for a company to succeed in a host country. Introduction: The report based on the fast food market focuses on pizza making brands Dominos, Pizza Hut and Papa Johns. This report concentrates on the activities carried out by these brands across the globe in countries such as the United States of America, India, Mexico and China analyzing how cultural differences affect each brand (Fig -1). Through the analysis of the level of standardization and adaptation adopted by these brands across diverse cultures the report sheds light on the chosen companies activities: Websites, Sales Promotion, Advertising, Branding and Pricing. In the business environment is it integral to understand the differences in cultures, attitudes, environments etc. that requires firms to view their companies through a range of indices. Standardization gives companies an increasing advantage in terms of economies of scale along with common brand images as consumers have become increasingly mobile (Levitt, 1983; Craig, 1986, Yip, Loewe and Yoshino, 1988 as cited by Theodosiou and Leonidou, 2003). Dominos, Pizza Hut and Papa Johns have tried to internalize these benefits although as contended by Terpstra and Sarathy in 2000 (Theodosiou and Leonidou, 2003) these firms are affected by factors like culture, purchasing power and consumer needs therefore encouraging adaptation. This report aims to analyze marketing activities in different economically developed markets such as China and India belonging to the BRIC nations, Mexico a developing country and USA a developed nation. These markets give insights into differing price sensitivities affecting the products being sold respectively. Marketing Activities Analysis Advertising Pizza hut, Dominos and Papa Johns generally make use of Television commercials to advertise their products around the world. They use TV commercials as it enables them to reach a large target audience to deliver their marketing communications. This pull strategy fits in with the companys budgets and is adapted to meet the local requirements of the countries in which they are viewed in thereby promoting sales. Dominos Table 1 Country Tagline Language of advertisements Snap Shot of the Tagline India USA China Mexico Yeh hai rishton ka time (This is the Time for Relationships) Oh Yes We Did! 30 minutes fast heat delivery. Hindi English Chinese Surce: (Dominos.co.in, 2012) Analysis on Dominos Pizza Dominos Pizza has differentiated itself by advertising and positioning itself differently in different countries. Having altered their advertisements to local languages Dominos is able to communicate in a better way to their customers. Though their standardized pull advertising strategies (Ghauri and Cateora, 2010) the company has generated increased amounts of interest in the consumers and Dominos continues to achieve this through their adapted sales promotions. Dominos have also adopted an identical ad in two of our chosen countries being USA and Mexico, wherein the commercial speaks about the product changes that have been made in order to improve the quality of the pizzas. This global prototype ad has been adapted locally being locally responsive (Ghauri and Cateora, 2010). Dominos has also adopted a standardised pattern throughout its operations in different countries although there are elements of adaptations that can be seen through their differing taglines etc. Dominos has al so been alert to meet cultural imperatives in countries like Mexico and China in terms of compadre and guan-xi as the commercials focus on relationships and friendships being established with the brand, this tends to positively effect sales (Ghauri and Cateora, 2010). Another interesting finding has been the fact that Dominos throughout its operations in both international and home markets have focused their attention to their fundamental delivery model as they gain a competitive advantage from delivery in the pizza business. Pizza Hut Table 2 Tagline Language of Advertisements Snap Shot of the Taglines India USA China Mexico Pizzas and Much More Make it great Pizza and More Hindi English Chinese Analysis on Pizza Hut Pizza hut has been marketed in a way to meet the requirements and the likings of different countries. Throughout the advertisements that are set out by Pizza Hut it is evident that their emphasis has been on their in-house dining experience. In most commercials there are snapshots of the waiters, the ambiance, the furniture etc. This standardisation with local adaptations in terms of their different products that cater to local consumer taste preferences displays the companys emphasis on their in house dining services instead of their delivery. Mexico on the other hand portrays commercials incorporating different settings on a ship, or at a rock concert and even in consumers homes. This can be linked to the fact that Pizza Hut does not cater to the online market but caters to customers over the phone (Pizzahut.com.mx, 2008) (Fig 2.10). This can be seen as a decision to cater to the economic condition of the market, as Pizza Hut has adapted their delivery channel (Theodosiou and Kats ikeas, 2001). Fig 2.10 Pizza Hut ads in Mexico Papa Johns Pizza Table 3 Tagline Language of Advertisements Snapshots of Taglines India USA China Mexico Better Ingredients Better Pizza Better Ingredients Better Pizza Better Ingredients Better Pizza Better Ingredients Better Pizza Hindi English Chinese Spanish Source: (YouTube, 2010) Analysis on Papa Johns Papa Johns uses a standardized tagline for Indian, Mexican, USA and Chinese marekts. Papa Johns have effectively used their CEO and produced high performing ads. Consumers have perceived these ads to be authentic and genuine (Kelso, 2012) giving Papa Johns consumers an image wherein the company cares and is about real people creating a personal connect with the consumer. Overall Analysis: As advertising is a basic necessity in the marketing mix of an international brand, the chosen companies Dominos, Pizza Hut and Papa Johns have translated the needs and wants of their local consumers. Through the use of adapted symbols these companies have also aimed to meet the cultural needs of local consumers. We have also seen that the companies have adapted their languages in different countries, which is intrinsically linked to different cultures (Ghauri and Cateora, 2010). Dominos and Pizza Hut have equalized their effects of both standardisation and adaptation, which is evident in their advertisements and their messages to respond locally. Papa Johns on the other hand have adopted pattern advertising, which can be linked to the concept of thinking globally, acting locally (Ghauri and Cateora, 2010), as the brand has a common mission to provide Better Ingredients Better Pizza, but still has adapted its advertising strategies in different markets. Through this example it is evi dent that B2C advertising is greatly heterogonous as the transferring success across different countries is increasingly difficult and therefore must be adapted. WEBSITES PIZZA HUT INDIA PIZZA HUT CHINA Source: (Pizzahut.com.cn, 2012) PIZZA HUT USA Fig-3.10 Food allergies and sensitivities Fig-3.12 Book it page PIZZA HUT MEXICO Fig-3.16 Nutrition ANALYSIS Pizza Hut USA has a red background which in most western cultures signifies Christmas as it is widely celebrated across USA and Mexico uses brown which means practical, down-to-earth and comfortable (Empower-yourself-with-color-psychology.com, 2009) this encourages customers to make purchases and are attracted to the websites. Pizza Hut India website also has a red background for its homepage and its delivery page. Red in India symbolizes Indian weddings and the Indian bride (Empower-yourself-with-color-psychology.com, 2009) thereby attracting the Indian customer. China has a light yellow background which depicts royalty and honour in Chinese culture reflecting the standard of service provided by the company in China, being compared to a 5* experience. (Empower-yourself-with-color-psychology.com, 2009). DOMINOS PIZZA INDIA Source: (Dominos.co.in, 2012) DOMINOS PIZZA CHINA Source: (Dominos.com.cn, 2013) DOMINOS PIZZA USA Fig-3.27 Tracker Page DOMINOS PIZZA MEXICO ANALYSIS Dominos has standardized layouts of its websites across the globe with white as its background colour. White symbolizes weddings and brides in the USA, and is a symbol of peace and purity in Mexico, India and China (Geert-hofstede.com, 2013) thereby motivating a purchase as customers feel relaxed when on the page. However, adaptations have been made to fit the different markets and bridge the cultural gaps (Ghauri and Cateora, 2010) PAPA JOHNS INDIA PAPA JOHNS CHINA PAPA JOHNS USA Fig-3.44 Investors Page PAPA JOHNS MEXICO Fig-3.45 Homepage ANALYSIS Overall, a certain level of standardization is seen in Papa Johns websites across countries. The websites in all four countries follow the colours of the logo. Green symbolizes new beginnings and white is sign of peace and purity in all four cultures (Empower-yourself-with-color-psychology.com, 2009), which subtly encourages purchases. There is also a degree of adaptation displayed in the websites. Sales promotions, advertisements and languages are adapted in context to the cultural values of each country. OVERALL ANALYSIS Dominos Pizza has a comparatively higher degree of standardization in its website layout in all four countries as compared to the websites of Pizza Hut and Papa Johns Pizza. Dominos website background colour is mainly white in all four countries unlike Pizza Hut and Papa Johns which have adapted their background colours in accordance to the culture of the respective countries. Pizza Hut India has adapted its website layout according to the countrys high-context culture. It shows an employee using various non-verbal communication techniques to promote its products, which is not shown in the websites of the other three countries. However, Pizza Hut does not provide the option of creating your own pizza and pasta, which is offered, by Dominos and Papa Johns. Finally, Papa Johns aims to make a connection with its customers by displaying pictures of its founder and brand ambassador, John Smith on the homepages of all four countries. Therefore, although there is certain degree of standardi zation in the websites of Pizza Hut, Papa Johns and Dominos, there are also certain adaptations that have been made in consideration of the cultural differences in each country. Websites being increasingly important in creating a link with the customers, as it is a direct portal between the brand and the customer, they must be increasingly adapted to accommodate cultural differences. Websites have also reduced the barriers between customers and the company as it has become increasingly accessible over the Internet in multiple countries. SALES PROMOTION Dominos India Dominos Mexico Fig 4.8 ONLINE-ORDER DEALS Analysis: Dominos has standardised its sales promotion in three of the four countries USA, Mexico and India through Facebook uploading coupons, unveiling new items, added to their menu. These promotional items being adapted from their domestic operations are culturally accepted in the countries in which they feature and hence have increased sales and adoption rates in short periods of time (can sales promotions go global). Dominos in both USA and India have used an adaptive approach for their sales promotion through Mobile Applications. China and Mexico both do not have a Mobile Application option for their customers. In USA the app., shows the Pizza Tracker option in which people can track their order progress status (Dominos, 2012). In the Indian app., they have not adopted such style of service to the customers and kept it simple to place an order. Dominos mobile applications technology gives the company a cutting edge advantage as 80% of smartphones have ordering apps (Dominosbiz.com, 20 08). In countries like China and India, Dominos has introduced its 30 Minutes or Free sales promotion. This effective sales promotion attracts new customers as a way of increasing sales in a short span of time. Furthermore, both Dominos USA and India have used the Electronic and Plastic cards option for their customers, whereby, they can send their loved ones greeting cards or vouchers by mail or post for usage in Dominos. Mexico USA have used another system of combining few options to offer to customers who come in a group of 2 or 3 to 5. They can thereby select a type of pre-fixed menu which differentiates with India and China Dominos. Papa Johns India Papa Johns China Papa Johns Mexico Papa Johns USA Analysis: Papa Johns Pizza does not have a mobile application (standardised for the global market) for its sales market in any of the countries, they just keep it normal by online or phone orders. Taylor Swift being one of the most top and famous singers of USA came to an agreement with Papa Johns Pizza of her album RED to be sold along with a Large Pizza as a promotion. Papa Johns, USA started Papa Rewards, a Gift Shop and an E-Gift card facility in only one country which elicits brand awareness through these sales promotions thereby increasing sales. American Football being one of the most popular sport of USA (Usatourist.com, 1998), Papa Johns came up with a two million free pizza scheme in collaboration with NFL targeting the local sport-freak customers (adaptive). Pizza Hut India Pizza Hut USA Pizza Hut Mexico Fig 4.27 Online Deals Targeted Football Followers Pizza Hut China Analysis: Pizza Hut has incorporated the same pre-fixed menus in all countries chosen (India, Mexico, China USA). They have adapted these to meet social and cultural norms. In India, Mexico and China they cater to a smaller group of people starting with 2 individuals, whereas in USA they cater to a larger group of people starting with 8. This aims to target groups of customers. Due to the recession period, the lower-priced chains gained sales and the bigger chains lost theirs sales. To gain some of its lost market share, Pizza Hut launched a $ 10 promotion by which customers could get any pizza, any crust and any topping for $ 10 thereby stimulating an immediate increase in their sales (Franchisedirect.com, 2010). Mexico and USA have used a similar approach towards their customers by setting a contest of winning a double trip to Football finals and Gamer Vacation of Maxim Magazine Party Spot respectively since Football is very well known and famous in both the countries. The Gamer Vacation contest is held mainly to attract the teenage category customers and influencing them to buy more beverages so that they can build the game pieces. Gift cards available in USA and India have been adapted to meet the local market taste through the personalisation of messages. In Mexico China they do not have this type of feature. Pizza Huts mobile application enables customers to place orders online, which has been adapted only in their two big markets USA China. Pizza Hut China has adapted its Childrens Party theme with a South African theme and a London theme as the children are very fascinated by the foreign countries thus getting attracted by such birthday parties (Pizzahut.com.cn, 2012) Overall Analysis: Sales Promotion/marketing activities are incorporated to attract customers and to promote their products (Ghauri and Cateora, 2010). Pizza companies use value meals and promotions/rebates to attract budget minded customers (Franchisedirect.com, 2010). These demonstrations do significantly well in less economically developed countries where prices are out of the reach of customers. (Can sales promotions go global) Dominos quoted that technology is playing an important role in their daily sales as it is convenient for users and customers can use it in their own time as they are more relaxed in ordering over the app. It added millions in revenue for Dominos just via the mobile app. Pizza Hut also quoted that it boosted its sales by $ 1 million in a period of five months from July to November 2009 (the initial period of launch) (Franchisedirect.com, 2010). Papa Johns has not yet adopted any kind of mobile application business for their customers. Facebook and Twitter are becoming a vital medium of sales promotion for the chain of stores. It has been quoted that 85% of the Pizza-chain sales are through promotions and discounts acquired through these social media websites according to the Citigroup Global Markets (Franchisedirect.com, 2010). The previous version of sales promotion was not effective enough since it could not target any specific group. Furthermore, these social media portals are more cost effective methods of marketing and promoting the products (Baker, 2012) India, USA and Mexico have aggressively marketed their products via Facebook and Twitter nowadays while China is still lacking behind this procedure due to government regulations which prevent foreign social media and micro-blogging websites. In order to meet the growing need for social media and microblogging in China the government has introduced an inter-country social media and micro-blogging websites such as Weibo.com, e.t.qq.com, renren.com that incorp orates different sales promotion as mentioned below (Table 1). They restrict these websites to avoid any sensitive issues to be discussed publically and become a revolt against the government officials (Branigan, 2009). Table 1 Websites: Facebook Twitter weibo e.t.qq renren Social Media Micro-blogging Micro-blogging Micro-blogging Social Media Dominos India, USA and Mexico India, USA and Mexico Pizza Hut India, USA and Mexico USA and Mexico China China China Papa Johns Pizza India, USA and Mexico India, USA and Mexico China With the introduction of a variety of sales promotions companies are able to significantly increase short-term sales encourage repurchase and increase buyer switching between brands. (can sales promos go iglobal) Pricing: Dominos Pizza: Dominos USA: General Analysis: At Dominos, by adopting a standardized strategy to their supply chain and dough manufacturing processes Dominos has been able to control price escalations (Fig 5.3) . Their One Brand One System policy (Dominosbiz.com, 1983) incorporates firms using the same core products and proven suppliers maintaining consistency and quality standards across different countries. This standardization has also given rise to increased buyer power from the company giving them a competitive edge in terms of prices of equipment and non-food items. Dominos has also lowered their distribution costs by implementing a shorter internalized distribution channel. Dominos has a set of Master Franchisers who further contract Sub Franchisers adapting itself to meet cultural differences affecting the deeply rooted channels giving increased localized information. (Fig 5.4) Fig 5.4 Master Franchisers and Sub Franchisers Dominos have also standardized their business model that solely caters to delivery and carry out pizza (Doctoroff, 2012). In developing countries although Dominos has incorporated tables in their outlets. Its purpose has not been to change its business model towards in-house dining but in fact to cater to local market needs. This does not affect prices, as high investments in the delivery of a service do not have to be incurred by the company. Papa Johns Pizza: Papa Johns China General Analysis: Papa Johns is aware of the drawbacks of competitor based pricing and hence have focused their pricing strategy by meeting a premium price point (Morrison, 2012). Papa Johns claims that their products are aimed at meeting the needs of those who are looking to purchase products providing them with value and better quality as their tag line suggests- Better Ingredients. Better Pizza. (Papajohns, 2013). This standardized approach that has been adopted has been able to maintain Papa Johns global coordination. Their prices have been set higher than competitors prices communicating the perceived value of the products although they have not been placed at a level where they do not generate sales as Papa Johns is part of the big four pizza franchisers (Franchisehelp.com, 2013). Papa Johns have influenced their prices by standardizing their entry modes into international countries through a franchising model as their products are perishable and need to be located near the consumer and consump tion of the product. Pizza Hut: Pizza Hut India: Pizza Hut Mexico: Source: Nytimes.com, 2010 General Analysis: Pizza Hut has standardized their business model and aims to meet high standards through their increasingly important service scape. Their restaurants give consumers a 5 star feel, which has been replicated throughout their operations in both domestic and international markets. This increasingly high standard of their service scape has increased their costs, as they need to meet a range of standards in terms of staff, furniture, cutlery etc. These significantly increase costs and are reflected through in the pricing strategies. By adapting their pricing strategies at Pizza Hut they have been able to gain a competitive advantage meeting the growing diversity in the food market. Pizza hut also sources their materials and equipment locally which helps manage price escalation. Branding Papa Johns Analysis: Brands today have an increasingly important role as they are termed to be the most valuable assets companies have (Ghauri and Cateora, 2010 p.286). Dominos and Pizza Hut have adapted a their brand over time to match a dynamic market. This can be seen through their change in logo and packaging respectively. Pizza Hut received a negative response from their consumers as the brand had formed a strong relationship with them. Dominos has benefitted from their change and they have adopted this change throughout their operations in USA. Papa Johns a having a transferrable logo has been able to standardize its logo throughout their operations (USA, India, Mexico and China) providing meaningful associations as the brand aims to provide customers with better quality products. Looking at countries like India, China, Mexico and USA companies like Papa Johns, Dominos and Pizza Hut have aimed to further strengthen their brand image with affiliations with other brands like Coca- Cola and Pepsi, which shows (Table 1) the different beverages used by the pizza companies. Conclusion: Despite the profound benefits brought by standardization this report lays emphasis on the fact that in the fast food industry- the pizza market, companies need to be increasingly careful with their marketing activities, as standardization could not bring long-term benefits for the company in an international boundary. This is affected by the fact that cultural differences play a significant role on the success of a product in an international country. Looking at the analysis in the report advertising has been greatly affected by subtle differences as suggested by Edward Hall in this theory of High Context or Low Context cultures. The chosen companies have adapted their advertising efforts to incorporate visuals, music and information by being locally responsive. Advertising in a B2C environment must be increasingly heterogeneous as transfer of success is becomes greatly difficult. Looking at the sales promotions adopted by Dominos, Pizza Hut and Papa Johns in order to gain a short-term response in increased sales these companies have been greatly responsive to differences in cultural norms, their target markets and government regulations in dissimilar markets Pricing has also been a determinant in the success of a company in an international country. The findings suggest that pricing must be alert to accommodate national customer purchasing powers. Different stages in the evolution of the PLC in chosen countries like China, India, Mexico and USA also greatly affect the pricing of a company thereby resulting in the success or failure of a brand. Marketing activity that incorporates branding analyses the fact that with a standardized brand in international boundaries like Papa Johns gives increased brand coherence and is easily transferrable into an international markets. Pizza Hut on the other hand having created a personality with its customers could not alter its brand name and logo, as customers were not accepting of the idea. Having placed significant amounts of emphasis on the closest form of contact between customers and the company, Pizza Hut has used an innovative concept wherein a man guides customers through the Indian website meeting subtle cultural associations in terms of gestures and facial expressions. Dominos have also been innovative adapting their websites to meet the growing technologically savvy customers and have introduced new tracking techniques etc, giving customers a clear understanding of where their pizza is during the production and exactly how long it will take. Owing to these marketing activities analyzed in the report it is evidently clear that companies although focus on sales promotions being short term, in order to gain long term benefits the company must adapt itself meeting local requirements. These companies as seen also provide enough standardization so as to reap benefits from brand salience and resonance.
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