CASE STUDY-1 Starbucks in China China evokes many images. One aspect of Chinas image is the consumption of tea.

The ubiquitous nature of tea in China is captured in the common expression: I ou!dnt do that for a!! the tea in China." To visit a store or home in China is to be offered hot tea# and it comes automatica!!y ith food throughout the country. $iven the dominant position of tea in the Chinese cu!ture# ou!d you consider China to be a good country in hich to !aunch a chain of coffee shops% &tarbucks does' In (anuary )***# &tarbucks in con+unction ith its Chinese partner# opened its first retai! out!et in China in ,ei+ing. -hi!e the opening ceremony as traditiona!!y Chinese ith dragons and f!o er reaths# the out!et and most of its products are strict!y -estern. .avid &un# C/O of &tarbucks Chinese partner# states:" 0t &tarbucks e offer the very best of c!ass in everything e do# from bre ing the perfect cup of coffee to inspiring magica! moments in the !ives of our customers. This is the heart and sou! of &tarbucks experience." 1o ever# does a perfect cup of coffee provide va!ue to a customer ho norma!!y drinks tea% -i!! a estern sty!e coffee shop provide inspiring magica! moments" to Chinese consumers% 2ot !ong ago simi!ar questions ere being asked about the &tarbucks concept in 0merica. 3or its first )4 years# &tarbucks operated a sing!e retai! out!et in &eatt!e. In )*56# 1o ard &chu!t7# &tarbucks director of marketing# as vacationing in Ita!y here he noticed the immense popu!arity of espresso bars. 8pon his return# the firm !aunched a coffee bar in do nto n &eatt!e. This experiment as successfu!# and the firm began its rapid expansion across the 8nited &tates. Critical thinking questions ). The coffee bar concept# coup!ed ith high9qua!ity# strong f!avored coffee# obvious!y transferred from the Ita!ian to the 0merican cu!ture. 1o ever# 0merica has traditiona!!y embraced coffee. -i!! &tarbucks ork in countries here tea is the dominant drink% :. -hat va!ue i!! affect &tarbucks success in China% 6. -hat ethica! issues shou!d &tarbucks consider as it enters deve!oping countries%

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CASE STUDY-2 &koda had a monopo!y in car manufacturing in C7echos!ovakia unti! the )*5* ;<e!vet =evo!ution. .uring this time it had deve!oped a fearfu! reputation as possib!y the orst designed car in the or!d. (okes about its notoriety idespread. The on!y p!ace it so!d in any number orse bui!t# ere ruth!ess# unremitting and

as in the country of manufacturer. 0fter the ou!d

fa!! of communism the C7ech government started !ooking for a commercia! partner in the -est to revita!ise its &koda factories. >ost respected commentators fe!t strong!y that there never be a business prepared to take on the acquisition because of the huge task of transforming the name from risib!e re+ection to amiab!e acceptance. In )**)# ho ever# <o!ks agen took a 64 per cent stake in &koda and started &koda synonymous deve!opment and ne ork in training and educating the orkforce to -estern qua!ity standards in the hope of comp!ete!y turning the business around# making the name of ith qua!ity and re!iabi!ity. It invested over bi!!ion in the p!ant# research# mode!s. It a!so undertook an advertising campaign# of momentous

proportions# that excited the admiration of a!! in the promotion business. Ten years !ater# in :44)# <- took tota! contro! of the business and such as its success# &koda had become one of the fastest9gro ing car brands in the 8? motor industry# increasing sa!es in the first t o years by over @4 per cent. 0!though sa!es in :44A have fa!!en s!ight!y# in !ine a!ter and turn around such deep!y ingrained consumer ridicu!e and opposition. Questions: ). .iscuss the part that an understanding of consumer behaviour p!ayed in the success of &koda. :. -hat ere the ma+or prob!ems that <- had to so!ve to overcome consumer antipathy to &koda% ith other car manufacturers# the story is one of remarkab!e success# not !east in being ab!e to understand and

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CASE STUDY-3 >aruti9&u7uki is a e!! kno n 0utomobi!e company in India. It is a!so en+oying the status of having the !argest share of Indian automobi!e market. >8BCs D>aruti 8dyog BimitedE >aruti9 544 as idea!!y suitab!e for Indian customers as it as reasonab!y priced# fue! efficient and as s!eek and easy to drive hen compared to the other mode!s avai!ab!e in market. -ith the success of its >9544# >8B soon rep!aced 1industan >otors as the !eader in the passenger car market. ,ut then a!so# >8B come up ith severa! strategies in the market recent!y to combat other competitors in the segmentF The various strategies areF G aunch o! ne" #ariants an$ %o$els G &ncreasing $ealer 'ro!itabilit(9.uring :446 and :44A# >8B visua!i7ed and Imp!emented a strategy for its dea!ers to increase their profitabi!ity !eve!s in vie of increased competition. 0ccording to the strategy# the 6449odd dea!ers of the company ere asked to strengthen their manpo er# increase the sa!aries of their sa!es agents# and offer them better incentives... G )ro%otional o!!ers99>8B focused its promotions strategy on targeting t o9 hee!er o ners. G *Change Your i!e* ca%'aign99>8B !aunched nove! offers !ike HChange Iour BifeH campaign and a!so offered vehic!e insurance Cfor =upee One on!yC# to attract customers G Tele#ision ca%'aigns99In :446# >8B came out ith a toy car advertisement that became popu!ar for its simp!icity and straightfor ard message. The advertisement depicted a chi!d p!aying ith a toy car. -hen reprimanded by his father the chi!d rep!ies# C?ya karoon papa petro! khatam hi nahin hotaC D-hat shou!d I do% The petro! never finishesE G *2+,,* o!!er99In :44A# >8B introduced the C:J**C offer under hich a consumer cou!d buy an >9544 by paying an />I of =s :#J** on!y# for a period of seven years. The do n payment as fixed at =s A4#444. >8B entered into an agreement ith the &tate ,ank of India D&,IE# the !argest bank in India# to promote this scheme G *Teacher )lus* sche%e99To further penetrate into the market# >8B continued to focus its efforts on the rura! markets and specific target groups. In :44A# it introduced the CTeacher p!usC scheme# in a tie9up ith &,I# aimed at teachers ho ere interested in buying a ne car. G -aruti *True .alue*F0 one stop so!ution out!et for exchange and buying9se!!ing o!d cars. The question is

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a. -hy >8B has to come up ith these strategies even though it is en+oying a comfortab!e market share in India% b. -hat cou!d be the re!evance to study this case regarding consumer behaviour% CASE STUDY-/

>any marketers think that marketing to &audi 0rabian

omen is a very difficu!t task. -omen

in &audi remain behind the purdah and it is difficu!t to talk to them. &audi 0rabia is one of the !argest markets in exists a &audi >ost est 0sia and is a homogenous society. There omen are passive consumers. >any omen ork in &audi 0rabia and the

rong notion among some marketers that &audi omen are often high!y educated. 0bout 6#54#444 omen

number of fema!e students in the co!!eges is set to rise about )#KJ#444 in the next t o years. ork in the traditiona! fie!ds of hea!th and education. &ome are even emp!oyed in retai!ing# designing# pub!ishing and manufacturing. They are exp!oring ays to se!! products to &audi omen since &audi 0rabia is considered a omen find these out9of9to n ma!!s

young market. &hopping ma!!s are an utter f!op as inconvenient. >2Cs have rea!i7ed that &audi

omen are brand conscious and make the buying ho have !inks ith co!!eges#

decision for househo!d items. >2Cs have been searching intensive!y for omen ho can act as intermediaries bet een the company and the c!ients and those omen groups# etc. >arketers shou!d no stop underestimating the sophistication of &audi is time they recogni7ed that they are the emerging economic force. 0 omen as consumers. It omen emerging out of a

car fu!!y covered by the purdah# may ho!d a degree in finance or !a or medicine and so on# and she may be a potentia! consumer given her educationa! background and cu!ture. Questions: DiE Bist out the differences bet een Consumer ,ehaviour of -omen in a closed culture Das described by this caseE in &audi 0rabia and in a open culture Dsay# in -estern /uropeE.

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DiiE 1igh!ight the cu!tura! imp!ications for a -oman consumer and a!so for a marketer in the given context.

CASE STUDY-+ To(ota solutions Of a!! the s!ogans kicked around Toyota# the key one is kai7en# hich means continuous improvement" in (apanese. -hi!e many other companies strive for dramatic breakthrough# Toyota overtook 3ord >otor Company to become the second !argest automaker in the or!d. 3ord had been the second !argest since )*6). Toyota simp!y is tops in qua!ity# production# and efficiency. 3rom its factories pour a ide range of cars# bui!t ith unequa!ed precision. Toyota turns out !uxury sedans ith >ercedes9,en79!ike qua!ity using one9sixth the !abor >ercedes does. The company originated +ust9in9time production and remains its !eading practitioner. It has c!ose re!ationships ith its supp!iers and rigid engineering specifications for the products it purchases Toyotas or!d ide !eadership in the automotive industry as bui!t on its competitive advantage across the supp!y chain. ,et een )**4 and )**@# Toyota reduced part defects by 5A percent# compared to AK percent for the ,ig 6. It a!so reduced the ratio of inventories to sa!es by 6J percent versus @ percent. These reduction advantages occurred despite the fact the ,ig 6 re!ied on identica! supp!iers. 0 study by (eff .yer of The -harton &choo! of the 8niversity of Lennsy!vania and ?entaro 2obeoka of ?obe 8niversity attributed Toyotas success part!y to its imp!ementation of bi!atera! and mu!ti!atera!# kno !edge9sharing routines ith supp!iers that resu!t in superior Interorgani7ationa! or net ork !earning. Toyota uses six approaches to faci!itate kno !edge sharing: D)Ea supp!ier associationMD:E teams of consu!tantsMD6Evo!untary study groupsMDAEprob!em9so!ving teamsMDJEinterfirm emp!oyee transfersM and D@Eperformance feedback and monitoring processes. This effort a!so invo!ves intense !eve!s of persona! contact bet een Toyota and its supp!iers. Toyota pioneered qua!ity circ!es# hich invo!ve orkers in discussions of ays to improve their tasks and avoid hat it ca!!s the three .s: the dangerous# dirty# and demanding aspects of factory ork. The company has invested NKK4 mi!!ion to improve orker housing# add dining ha!!s# and bui!d ne recreationa! faci!ities. On the assemb!y !ine# qua!ity is defined not as 7ero defects but# as another s!ogan puts it# bui!ding the very best and giving the customer hat sheOhe ants." ,ecause each orker serves as the customer for the process +ust before hers# she becomes a qua!ity contro! inspector. If a piece isnt insta!!ed proper!y hen it reaches her# she ont accept it.

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Toyotas engineering system a!!o s it to take a ne car design from concept to sho room in !ess than four years versus more than five years for 8.&. companies and seven years for >ercedes. This cuts costs# a!!o s quicker correction of mistakes and keeps Toyota better abreast of market trends. $ains from speed feed on themse!ves. Toyota can get its advanced engineering and design done sooner because# as one manager puts it# -e are c!oser to the customer and thus have shorter concept time." 2e products are assigned to a chief engineer ho has comp!ete responsibi!ity and authority for the product from design and manufacturing through marketing and has direct contacts ith both dea!ers and consumers. 2e 9mode! bosses for 8.&. companies se!dom have such contro! and a!most never have direct contact ith dea!ers or consumers. The )*** 1arbour =eport# a study of automaker competencies in assemb!y# stamping# and po ertrain operations# stated that the top assemb!y faci!ity in 2orth 0merica Dbased on assemb!y hours per vehic!eE is Toyotas p!ant in Cambridge# Ontario. In this p!ant# a Coro!!a is produced in )K.@@ hours. Toyota as a!so rated number one in engine assemb!y# taking +ust :.*K hours to produce an engine. In Toyotas manufacturing system# parts and cars dont get bui!d unti! orders come from dea!ers requesting them. In p!acing orders# dea!ers essentia!!y reserve a portion of factory capacity. The system is so effective that rather than aiting severa! months for a ne car# the customer can get a bui!t9to9order car in a eek to )4 days. Toyota is the best carmaker in the or!d because it stays c!ose to its customers. -e have !earned that universa! mass production is not enough#" said the head of Toyotas Tokyo .esign Center. In the :)st century# you persona!i7e things more to make them more ref!ective of individua! needs." In )***# Toyota committed to a N)6 bi!!ion investment through :444 to become a genuine!y g!oba! corporation ithout boundaries. In this ay# it i!! be ab!e to create or!d ide manufacturing faci!ities that produce cars according to !oca! demand. Its goa! is to achieve a )4 to )J percent g!oba! market share by :4)4. -hy the drive to ards customi7ation of vehic!es% Lart of this is due to fierce competition that provides consumer ith a mu!titude of choices. The Internet enab!es consumers to be more demanding and !ess compromising. They no have access to the !o est prices avai!ab!e for specific mode!s of vehic!es ith a!! of the be!!s and hist!es they design. 3rom the comfort of their homes# they are ab!e to bypass dea!ers and sti!! find the vehic!e of their dreams. &enior management at Toyota be!ieves that kai7en is no !onger enough. The senior vice president at the Toyota 8&0 division# .oug!as -est# states that his division is committed to both creating and executing a ne information system to drive the fastest# most efficient order9 to9de!ivery system in the 2orth 0merican market. Toyota management has come to rea!i7e ?ai7en a!one can no !onger predict business success. The s eeping changes taking p!ace in the business environment can no !onger re!y on the kai7en phi!osophy of sma!!# sustained improvements. In fact# one expert in the industry be!ieves that pursuing incrementa! improvements hi!e riva!s reinvent the industry is !ike fidd!ing hi!e =ome burns." Competitive vita!ity can no !onger be defined by continuous improvement a!one.

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Puestion: ). :. 6. In hat ays is Toyotas ne 9product deve!opment system designed to serve customers% In hat ays is Toyotas manufacturing system designed to serve customers% 1o does Toyota persona!i7e its cars and trucks to meet individua! consumer needs%

CASE STUDY-0 Consu%er attitu$es-The 1arle(-Da#i$son co%%unit( ,ackground In )*56# 1ar!ey9.avidson estab!ished the 1ar!ey O ners $roup D1.O.$.E in the 8nited &tates. This group as estab!ished because of the deve!oping interest of 1ar!ey o ners in participating in organised activities ith other 1ar!ey enthusiasts. >embership gre rapid!y and in the )**4s# 1.O.$. ent internationa!# hosting the Q rst ofQ cia! /uropean 1.O.$. =a!!y in Che!tenham# /ng!and. >embership continued to gro around the or!d in /urope and 0sia# inc!uding countries such as &ingapore and >a!aysia. The goa! of the 1.O.$. as to enhance the !eve! of invo!vement that 1ar!ey riders fe!t to ards the 1ar!ey brand and their main product: the 1ar!ey motorcyc!e. >embership of 1.O.$ brought ith it many beneQ ts# inc!uding access to the companys 1O$R >aga7ine# insurance# roadside assistance and 1ar!ey renta!s at severa! !ocations or!d ide. 1o ever# one of the ma+or events estab!ished to generate enthusiasm for the brand and stimu!ate consumer invo!vement as the Losse =ide.

The 1ar!ey9.avidson Losse =ideIn order to increase their riders !eve! of invo!vement ith their products# and enhance brand !oya!ty# 1ar!ey began promoting destination ra!!ies. 1ar!ey o ners ou!d attend a ;1omecoming event he!d in >i! aukee# -isconsin# here the 1ar!ey headquarters is !ocated# as e!! as !oca! and regiona! ra!!ies. These ra!!ies ou!d bring together thousands of 1ar!ey enthusiasts and ou!d !ink 1ar!ey riders to a ider 1ar!ey community. This created a sense of togetherness that engendered a greater appreciation for the 1ar!ey brand. 1o ever# these destination ra!!ies proved very expensive to administer and required up to )44 1ar!ey emp!oyees to assist ith the smooth running of the events. The company therefore decided to adopt the concept of ;touring ra!!ies. These are ra!!ies that take the form of a !ong9 distance bike ride. They emphasi7e actua!!y riding the 1ar!ey and provide a sense of camaraderie that the stationary ra!!ies do not. =iders go through severa! checkpoints and receive documentation proving that they have comp!eted the different stages of the ride. They are hosted

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by 1ar!ey dea!ers ho are eager to connect ith 1ar!ey riders and sho case their businesses in the !oca! media. The ra!!ies a!so often inc!ude a theme based on the route that the tour takes. 3or examp!e# the ;,!ues Cruise focused on stops that high!ighted 0merican musica! history.5 /nhancing invo!vement ith the 1ar!ey brand The Losse =ide is no steeped in tradition and ritua!s. 0t the beginning of the tour# riders take a ;Losse Oath regarding their participation in the ride Dinc!uding a ;no hining c!auseE. They are given a ;passport hich is stamped every time they comp!ete a stage of the ride. They a!so participate in severa! other tour activities ith the other members often entertaining each other ith stories about the adventures theyve had ith their 1ar!eys. These activities he!p the ride participants bui!d a stronger bond ith the 1ar!ey community and a!so increase their sense of identiQcation ith the 1ar!ey brand.

1ar!ey9.avidson has decided to put more resources into the touring ra!!ies since they are a va!uab!e opportunity to get c!ose to their main consumers. They can !isten to their consumers concerns and a!so get ideas on ho to improve their motorcyc!es and the attendant services. 3or the rider# membership in the brand community on!y serves to strengthen their re!ationship ith the brand. This in turn !eads to increased invo!vement and a more positive attitude to ards 1ar!ey.

) .o you be!ieve brand communities !ike 1ar!ey9.avidson resu!t in greater invo!vement the brand%

ith

: -hat e!ements of the Losse =ide do you be!ieve enhance the meaning of the brand for the riders% 6 &hou!d 1ar!ey9.avidson get more invo!ved in the ride or ou!d that di!ute the rides meaning to the participants% A In addition to experiences such as the Losse =ide# invo!vement in the brand% hat other ays cou!d 1ar!ey increase

J >arketers have targeted a!! of our senses in their attempts to reach consumers. Can you give any persona! examp!es of ho marketers have used vision# sme!! and co!our to enhance your perception of their offerings% @ -hat strategies can marketers use to attract consumers attention% 0re any of these strategies more effective than the others% -hy# or hy not% K -hat are the characteristics of attention% 1o consumers behave% cou!d these characteristics affect ho

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CBCRM CASE STUDIES