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SIMPLIFYING CONSUMER MARKETING IN DEVELOPED MARKETS [POLL] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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USA -- Simplification in the marketing arena is the result of re-engineering among the leading
US global consumer packaged goods companies. For shoppers, distributors and the industry, this
translates to fewer alternatives (sizes, forms, usage types, etc.), reduced product lines and less confusion at
the shelf for consumers in the store. Industry experts predict that these changes bring about higher sales.
Simplification cuts down on confusion, price-cut/coupon-loyalty and other destructive consumer influences at
point of purchase. In the USA, 20,000 new products are introduced each year; an estimated 25% survive after 2
years on the market.
The strategy of simplification has also proved successful outside the US. For example Max Factor in Japan significantly reduced the number of items for sale. The outcome was an increase in sales by 6%. Despite recent success stories, there is still a bit of skepticism among industry marketing experts about the effects on consumer satisfaction. All this following the recent trend of micro-marketing (which meant shampoos for brown, red or blond hair, oily, normal or permed hair, tired, perky or adventurous hair -- in travel sizes, family sizes, tote bag sizes, shower sizes, in spritz or mousse or liquid, etc.).
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S. KOREAN CONSUMERS DEMAND MORE SOPHISTICATED PRODUCT DESIGN AND PACKAGING | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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SEOUL, S. Korea -- With rising per capita income, now around US$10,000 a year, South Koreans have evolved into sophisticated consumers, with a more discriminating taste for "better things." Until recently, consumers in Korea traditionally purchased goods that were necessary and inexpensive. But with a rise in disposable income and consumer choices, there has been a greater focus on product and packaging design. Until recently, competitive product differentiation based on product/package design was the sole domain of leading conglomerates. To assist small- and medium- sized companies, a government-sponsored program was introduced to help them develop better-looking, and hopefully, better-selling products -- and to compete more effectively in this shifting consumer-driven marketplace. This program began in Korea in 1994, when KIDP (Korea Institute of Design and Packaging) brought in a group of about 150 foreign designers to work with smaller firms throughout S. Korea. KIDP covers 2/3 of the designers' fees for smaller businesses to participate in this program.
(Source: YOUR LINK HERE) |
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| NEW MEDIA AND A GLOBAL ECONOMY IMPACT CORPORATE MARKETING STRATEGY | TELMEX FACES COMPETITION IN MEXICO | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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WORLDWIDE -- The growth and importance of new media and the changes observed in an increasingly global economy,
have brought about changes in corporate marketing strategies. Businesses are changing their approaches to product design (standardization vs. local market customization), manufacturing (overseas or domestically), product fulfillment (regionally or locally), product launches and rollouts as well as core marketing and communications programs. With the changes underway (resulting in restructuring, downsizing, etc.), corporate leaders realize now more than ever the importance of communications as a core part of the corporate strategy. "Public relations is coming of age,'' according to Alison Canning, Chief Executive of Burson-Marsteller UK. Britain's Marketing magazine reported recently that turnover at several public relations firms had increased by 40% in the last year. Tied in with an expected continuing growth in public relations is the growing dependence of companies around the world on the internet (and intranet sites) to foster communications to the general public and internally throughout their corporate infrastructures. Deloitte & Touche released a survey this week, showing that North American companies are eager to be on the web. Among the corporations surveyed, nearly seven out of 10 already have Internet access. The survey further revealed that 96% of corporate respondents across North America expected their use of the Internet to increase over the next two years. With the growing importance of the internet, we also focus on changes in direct marketing -- with regard to reaching the customer and measuring direct marketing "success." Direct marketing programs have had to re-evaluate the measures of success as more and more 800 numbers and internet responses are accumulated, delivering qualified leads, that may inspire inquiry, but not on-the-spot sales. The Internet is destined to become an even greater marketing tool as the global economy further develops and businesses become more familiar with the online medium and continue to integrate it into existing marketing programs.
(Source: YOUR LINK HERE)
LATIN AMERICA -- The rates of adolescent fertility in a country can serve as a mirror, reflecting that country's progress in education, health care and urbanization. Progress in these areas can be used as a predictor of future trends -- trends in consumerism, social requirements, political and economic changes, etc. Adolescent women in the developing world give birth to 13 million infants annually, accounting for 13% of all births. Latin American feritility rates moved from among the lowest adolescent fertility rates in the 1970s to among the highest rates in the world today. However, this trend in Latin America is declining. Several factors that curb adolescent fertility rates are already evident in Latin America, such as increasing urbanization, delayed age at first marriage, increasing contraceptive use, and increased educational attainment. This article may be read in its entirety, courtesy of Market:newsletters. [Full Text] |
MEXICO CITY, Mexico -- Last month, Avantel launched in Mexico with 83 corporate clients to compete head on with Mexico's telecom giant, Telmex. Avantel is a consortium headed up by MCI. Full-scale competition will begin in January 1997, which marks the end of another of Mexico's monopolies.
(Source: YOUR LINK HERE)
UKRAINE -- Early September marked Ukraine's adoption of a new currency, the hryvnas. In anticipation of this new currency, some staple food prices soared 10% across the country -- some vendors demonstrating lack of confidence in the government, others taking advantage of the confusion. For the most part, the transition went smoothly. A majority of the 52 million Ukrainians are happy to have their own, new currency and anticipate improved living standards if inflation remains relatively low. The exchange rate has held steady in the last few days against the US dollar at 1.76 hryvnas to US$1. The inflation rate in July was 0.1% and the government has imposed a price-freeze nationwide for a month. Expectations are that prices will fall again and stabilize.
USA -- On September 3rd, Chase Manhattan and Chemical banks officially opened for business in a merger that was completed April 1. This US$11.4 billion transaction created the largest US bank with US$321.8 billion in assets.
WORLD -- The Population Reference Bureau in Washington, D.C. released the 1996 annual wall chart. And the latest release is even more useful than the previous versions. Additional information has been added, including secondary education enrollment for men and women. The compilation of information from these statistics is always interesting and this year is no exception. For example, Japan remains the unquestioned world leader in life expectancy at birth, with 80 years overall. This article may be read in its entirety, courtesy of Market:newsletters. [Full Text]
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| .....check back for more news this month! |
For more information about any of these topics in any foreign market, or
if you would like an in-depth market study, contact PANGAEA, International Consultants. With
an extensive network of marketing consultants, attorneys, logistics experts and more around
the world, PANGAEA is uniquely qualified to offer hands-on, local marketing and management
consulting services.
Reprints/copies of this issue are available for US$10.00 per copy.
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are not for resale. No part of this file may be printed, copied, distributed
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PANGAEACommunications
Updated 9/19/96
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