“Can Sales Promotions Go Global?”How ‘social’ are social media? A cross-cultural comparison of online and offline purchase decision
influences”, HBS case Diageo: Innovating for Africa and INSEAD case Unilever in Brazil
1. The concept of standardization and customization applies to all aspects of Promotion Strategy
(10 pts). Using the materials and articles:
a) Define all of the components of promotion strategy, i.e., advertising, sales promotion, public
relations, personal selling, and direct marketing. Can all these components be standardized
or do they need to be customized in devising a global promotions strategy?
b) Are there promotion strategy components that are more easily standardized for consumer
products (B2C) than for industrial products (B2B)? If so, identify and explain which one(s). If
not, explain why you don’t believe that to be true.
c) In the context of global markets, explain the significance of social media as a promotional
tool. Analyze its specific pros and cons as it pertains to global promotions. How does it
differ across cultures?
2. The following questions are based on the HBS case Diageo: Innovating for Africa case (20 pts).
a) What is Diageo’s global strategy? What have they done well in Africa?
b) Discuss the environment Diageo faces in Africa including competitors, culture, pricing,
distribution, etc.
c) How is Diageo structured for global innovation, i.e. developing new products? Evaluate this
structure, does it offer the flexibility Diageo needs?
d) Was Diageo’s emphasis on Project Ramani warranted?
e) Diageo positions itself as primarily a premium brand. Evaluate the decision to develop less
expensive beers for the African market rather than focus on its premium brands
f) Looking forward, there are a many of issues Blazquez faces. What advice would you offer?
3. The following questions are based on the INSEAD case Unilever in Brazil (20 pts).
a) What are the short term financial implications and long term strategic implications of
targeting low income consumers?
b) Based on your analysis above, should Unilever target this segment?
c) Evaluate Unilever’s current brand portfolio. Is a new brand necessary to serve the low
income segment or should Unilever reposition one of its current brands or develop a brand
extension?
d) Regardless of your previous recommendation, if Unilever targets low income consumers in
the northeast of Brazil:
a) What product strategy do you suggest?
b) What promotion strategy do you suggest?
c) What pricing strategy do you suggest?
d) What distribution strategy do you suggest?
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