28 avril 2011

Total and the geopolitical environment

Waiting for petrol
Total,  as most oil companies face strong political and social challenges. In an era when peak oil invite governments and firms to search for new sources of energy, a search for diversification has to be engaged and motive more exploration and more innovation.

Gaz is certaintly the expanding area for Total, and the success of bolivian discovery is a good news.

But to explore new ressources agreements with states are necessary, they impose since long years stricts conditions.

It requires also strong technologies but also legitimated engagements.Exploitation of shale gaz enlight the ecological aspect. However Total also invest in solor energy. Do oil companies are going t be multi-energical sources compagnies (MEC) ?

A study from indonesian students

Nokia at the crossroads

If Nokia was the true winner of the mobile revolution, it lost the smartphone evolution letting Apple take the advantage. How Nokia could reverse the situation? For that it is necessary to weel undestand the global telecom environment.

The competitive environment is reshaped with the technological convergence, the move from voice to data as the main source of revenue and the slowing growth of developped countries.

Multiplication of plateforme : e-book, tablet, game console is also a concern.

27 avril 2011

HSBC and the new asian Middleclass

HSBC Hong Kong
HSBC is one of the only real global bank, working in a multicultural environment. In asia its developpement is closely link to the growth of middle class, even in some countries it encounter difficulties. Targetting the upper middle class it has now a customer base more than 12 millions of people.

Toyota or the reputation challenge

Toyota concept
Toyota grew up through productive innovation. Kan ban, TQM, were the arm to conquer the world building undisputable image of reliability. But it was hurted and the very challenge is in its restauration. This reputation is not only necessary for actual sales but also to prepare futur environmental change that will transform twofold the industrive automotive industry. Global warming imply to be able to reduce production of CO2 and so to able able to market more efficient cars and avoid critiscism from the society. But also be able to introduce completly new solution of motorization, that's the challenge of the Hybrid car which compete with alternative proposition as purely electrical vehicule as such the renault project. That's needs credibility.

What has to be considered is that reputation is not only a question of end-users and consumer, but involved a large number of third party : consumer association, government, scientists, urban planners. Change in the automotive industry will imply a reconfiguration of the structure of the markets, and more than being well evaluated for cars, the challenge will be to be considered as a transport solution provider as this video show it, or as Thomas Frey described it. The question is not new.

If today carbon concern is high, oil peak a quasi reality, urban concentration and traffic jam is also a big concern for this industry, especially in Asian town where an tremendous increase of car population is observed. This three factor will arouse a need for disruptive innovation, and those who will win has to be credible with the solution they propose.

26 avril 2011

Carrefour in the asian environment

Prospectus Djakarta
Asia is one of the most intersting market for carrefour even an over dispersion of activities bring the company to refocus on India, china and indonesian market in the year 2010, retiring from Thailand or Japan.

But what are the perspective in this region where millions of people belong to the middle-class. Do the hyper market format is adapted to local conditions and urbanisation? How to deal with local competitors? How to manage heterogeneity of consumer behavior? Where do focus attention and investment?

A nice study from MMUI

Maersk Line : a mirror of international trade

Maerks Line ship
Maersk Line is one of the leading liner shipping companies in the world, serving customers all over the globe.With a fleet numbering more than 500 container vessels and more than 1,400,000 containers, they comprehensive worldwide coverage, their feeder vessels, trucks and dedicated trains allow us to offer a unique concept of door-to-door services.By nature their activities reflect the international trade.

Some challenges are affecting the future of this business : security, energy and concern, but also environmental technology through the necessity of optimization of routes and logistics. A detailed analysis of the case enlight that main environmental component are first the level and structure of international trade that favour long-haul route strategy and use of large vessel with meticulous route analysis to handle the asymetric mouvement ( ie: china export more volume of trade than they import). A second element that favour this evolution is clearly the structure of infra-structure which are more and more regionalized around martime Hubs. Theathens came from piracy question and evolution of price of energy that could account up to 40% of cost of transportation. Clearly that reinforce actual strategy of Maersk.

A wonderful study from MMUI at Jakarta(if you like dreams and travelling)

2 avril 2011

Armani : club or network effect

Emporio Armani
["Marketing in Globalisation" project]

The luxury market fascinates and the luxury industry has been the centre of much attention.  One of the key questions is the concerned with brand architecture. This mass prestige strategy (Masstige) is well-known.  It uses the pull of fashion and designer clothes to offer  brand accessories and cosmetic products that wealthier consumers can aspire to easily.  But, just up to what point can the product range retain its attraction without weakening?

The case of Armani is a particularly interesting one, because in its category it is the one that takes the strategy the furthest.  To understand this, it is important to show the fundamental distinction between luxury and fashion, and then come up with a hypothesis about the very nature of the Armani brand.

What distinguishes luxury from fashion is undoubtedly based on a straightforward economic argument concerning the nature of brand value.  The world of luxury is marked by the club effect phenomenon whereby the value of a good increases in direct proportion to the number of people who can’t aspire to it.  We are prepared to pay more if the price is a barrier to other consumers since we taste the satisfaction that others can’t have.  The club is structured around price levels that establish clear thresholds of access. The last word in luxury therefore becomes the notion of a club within a club.  Fashion works upon a different principle to this.  Goods are perceived as more valuable if they are seen as a way of belonging to the avant-garde up until the point where there is an excessive number of adopters.  Value is an network externality. Fashion is therefore condemned to continually renew itself, whilst luxury is based on exceptional know-how and a demanding tradition.

The Armani brand is catlike, virile and associated with relaxed Mediterranean elegance.  Perhaps it is really not a true luxury brand.  Closer to the world of fashion, it can explore a wider universe without running the risk of damaging the brand status.  For example, the youth market through Armani jeans.
Travaux étudiants

2011 esc pau armani final ppt
View more presentations from Christophe Benavent

Le luxe fascine et les industries du luxe sont largement examinées. Une des questions clé est celle de l'architecture de la marque. On connait bien cette stratégie de prestige de masse (Masstige) qui s'appuyant sur le flamboiement du style et de la haute couture décline la marques en accessoires et cosmétique que les classes aisées du monde peuvent sans difficulté acquérir. Jusqu'à quel point la gamme de produit peut recevoir la lumière sans l'affaiblir ?

Le cas d'Armani est tout particulièrement intéressant car il est dans sa catégorie un de ceux qui étendent le plus loin cette stratégie. Pour le comprendre, il faut revenir à la distinction fondamentale du luxe et de la mode, puis faire une hypothèse sur la nature de la marque Armani.

Ce qui distingue le luxe de la mode tient sans doute dans un argument économique simple qui porte sur la nature de la valeur de la marque. Le luxe est marqué par le phénomène de l'effet de club : la valeur des biens est d'autant plus grande que peu y accède. On paiera d'autant plus cher que le prix exclue les autres de la consommation, sa saveur réside dans cette jouissance enlevée a autrui. Le club peut ainsi être structuré sur des niveaux de prix qui établissent des seuils d'accès distincts. La pointe du grande luxe devient ainsi un club dans le club. La mode obéit à un autre principe : les choses valent d'autant plus qu'elles se diffusent donnant un signe d'appartenance à l'avant-garde jusqu'au point où un nombre excessif d'adopteurs s'est emparé du signe. La valeur est ici une externalité positive de réseaux. La mode ainsi est condamnée à se renouveler sans cesse, quand le luxe s'appuie sur des savoirs-faire d'exception et une tradition exigeante.

La marque Armani qui associe dans une certaine félinité, le viril et cette élégance décontractée de la méditerranée, n'est peut-être pas finalement une véritable marque de luxe. Tenant plus de la mode elle peut ainsi explorer des univers élargis, celui de la jeunesse avec Armani Jeans par exemple, sans risquer de ruiner le statut de la marque.

P&G : structural dualism for glocal policies

P&G Headquarter
[Project Marketing in Globalisation]

Procter & Gamble is probably the canonical marketing case.  Is it the inspiration behind brand management, or is it indeed a well-thought out application of the doctrine?  However, the brand know-how cultivated by P&G has changed over the years influenced by factors that have transformed the group including; globalisation, scales of operation, domains of activity and distribution concentration.

Structured since 2005 into a Strategic Business Organization and a Market Development Organization, P&G sees its strategy at two levels.  Firstly a global approach to its brands, which have tended to become experiential concepts covering a wide range of products.  Secondly, a local approach that aims to coordinate distribution with the adaptations of the marketing plan.  One plan is designed in terms of product category, the other in terms of territory.  These are two physical and symbolic spaces.  We can suppose that it is in the dialogue between the two plans that thier adjustment is made. Below is an excellent reference for a study of the P&G case by J-Marc Lehu.

Lehu J.M.  LES SOURCES DE LA PERFORMANCE MARKETING CHEZ PROCTER and GAMBLE : La fin d'un certain marketing…de masse. (French). Decisions Marketing. October 2005;(40):17-30. 
 Travaux d'étudiants
P&G : structural dualism for glocal policies
View more presentations from Christophe Benavent

Procter and Gamble est sans doute le cas canonique du marketing. S'en inspire-t-on dans la gestion des marques, ou justement est-il une application bien pensée de la doctrine ? Mais le savoir faire de marque que cultive P and G s'est transformer au cours des années. Globalisation, échelles d'opération, domaine d'activité, concentration de la distribution voici jetés quelques uns des facteurs de la transformation du groupe.

Organisée depuis avant 2005 en une Strategic Business Organization and en une Market Development Organization, PG projette sa stratégie sur un double plan. Une approche globale des marques, qui tendent à devenir des concepts expérientiels couvrant un champs élargi de produit, et une approche locale qui vise à coordonner la distribution et les adaptations du plan marketing. Un plan est pensé en termes de catégorie, l'autre d'un territoire. Deux espaces physique et symbolique. On imagine que c'est dans le dialogue des deux plans que leur ajustement est fait.

  • Lehu J.M.  LES SOURCES DE LA PERFORMANCE MARKETING CHEZ PROCTER and GAMBLE : La fin d'un certain marketing…de masse. (French). Decisions Marketing. October 2005;(40):17-30. 
  • An interview with the CEO of P and G