Nissans Global Strategy

Nissans Global Strategy Nissans global strategy with focus towards its entry and expansion to India Introduction Globalisation in terms of strategy actually makes us aware of to two simultaneous changes, the globalisation of industries and the globalisation of markets. The globalisation of industries refers to the increased integration of business across national borders due to rapid advancement in communications, transportations and the absence of wide spread high intensity world conflict leading to increased international trade flows and foreign direct investment. The technological advances combined with successful implementation of free trade policies by many countries has resulted in companies being able to expand their operations internationally as well as compete itself in multiple countries. The globalisation of markets refers to the concept that demand preferences are becoming more homogenous across national borders which means people are increasingly looking for same product around the world. Both these aspects play predominant importance in a firms global strategy towards its expansio n internationally. (Scott Gallagher, 2005) Nissans Global Strategy Nissan Motors global strategy involves its aim to become an industry leader in zero-emission vehicles and to cultivate developing markets with low-cost global cars. As part of zero-emission environmental friendly vehicles, it would be beginning with the launching of the new electric vehicles (EVs) which would be powered by advanced lithium-ion batteries to be jointly developed with electronic maker NEC Corp. The EV to be introduced will have a unique body style on an all-new vehicle platform which would be compact for the city, yet big enough to carry five adults. Importantly, it will be thoroughly usable with brisk performance and a range of 160kms. It will have the performance of a typical 1.6-litre petrol-engine car while recharging from a high voltage source will restore 80 per cent of the battery capacity in around 30 minutes. The company with its alliance partner Renault, which holds 44% stake in it, has been developing partnerships with various governments and specialist compa nies to build a sustainable mobility network and create public awareness towards EVs as its preparing for marketing them on a mass scale. Various understanding has been signed with electricity companies, charging station suppliers and governments to promote the concept of zero emission mobility and provide infrastructure support, craft legislation or offer incentives such as tax relief, parking or toll rebates for EV buyers (Source: The Japan Times online, May 14, 2008). Cultivating developing markets with low-cost global cars, Nissan is globally launching its new small car on a fresh global platform. The common global platform strategy is part of Nissans endeavour to produce a host of cars, be it hatchbacks or sedans, across five countries in which thus far India, China and Thailand have been identified as key manufacturing locations. The new small car, touted as a replacement for the Micra, will first go into production in Thailand with shipping out key components from India and t hen later on the production would be from India. Nissans Entry Expansion to India As part of its entry and expansion to India, the company is tying up with its alliance partner Renault and stetted up a manufacturing facility in Chennai, India with an investment of INR 4500 crores, which will have a capacity of producing four lakh units. It also has alliance with Ashok Leyland to build Light Commercial Vehicles, with Bajaj to develop ultra-low-cost cars, with Hover for marketing, sales and dealer development support and with Maruti-Suzuki to export A-segment vehicles to Europe (Source: The Hindu Business Line, Sep 30, 2009). Apart from setting up a manufacturing facility, Nissan Motors India Private Limited is also developing a high-tech research and development facility in Chennai mainly used for developing Robotic painting that would help in boosting up the quality, enhance flexibility, increase saving and improve safety for its international business. This R D facility would allow the company to claim the weighted tax deduction of up to 150% for in-house resear ch and R D activities entitled by the government of India, making its product more likely cheaper (Source: Rediff India Abroad, Apr 10, 2009). The company believes that the scope of growth in India is immense since the penetration of vehicles into the markets is less than 50 per 1000 nationals compared to US of 800, Germany, Japan, UK and France of 600 vehicles per 1,000 people. The total industry volume globally increased 6.1 per cent even though Western Europe was flat, the US market was down 3.5 per cent and Japan was down 5.3 per cent in 2008 (Source: Business Standard, May 13, 2008). As part of its marketing strategy, the company, which already has two models ‘Teana and ‘X-Trail for the Indian market from 2004 onwards, is rolling out new sports car ‘Z370 in 2010 and fully redesigned luxury sedan ‘Teana and ‘X-Trail. The ‘Teana which was pitted against the Volkswagen Passat and the BMW 3 Series, won the Indian Executive Car of the Year 2008 for its excellence in driving comfort, performance, design and style, purpose with relevance and value for money. All these three vehicles is brought as Completely Built Units from Japan paying 109 percent duty showing that the company is making all possible efforts to expand its presence in India. Apart from that the company, will increase its product range to nine models by 2012, five of which will be manufactured in the Chennai plant. The first among these, to be launched in mid 2010, will be a hatchback based on the platform of Nissan Micra, expected to be priced close to INR 5 lakhs in t he Indian market (Source: The Economic Times, Sep 27, 2009). The company will begin exporting to Europe by second half of 2010, approximately 110,000 units (expected to grow to 180,000 units in future), manufactured in India per year, for which it has a contract manufacturing alliance with Maruti Suzuki. For exporting from Chennai, India, it has signed a Memorandum of Understanding with Ennore Port Ltd (EPL), making it the first automaker to utilize this eastern gateway port of India as an export base. EPL will complete development of a berth with space of 140,000m2 for vehicles by the end of June 2010 and would provide dedicated jetty for exports of Nissan cars to Europe (Source: Drive Inside.com, Oct 18, 2008). There is no information on how Nissan is going to price its car in Europe, exported from India, but the company will have to definitely address the import-export tariff rates as the EU-India Free Trade Agreement is still under negotiation and is most likely to be signed at the end of 2010. Regarding the exchange rate issues, it will depend upon which currency the company is going to invoice on. If its in US Dollars, as done for most of the trading between EU and India, then the company would have to look into the exchange rates between Indian Rupee Dollar and Dollar Euro. If its going for Euro trade, then it would have to address the exchange rates between Euro and Indian Rupee. In both these cases, the company will have to come up with fixed exchange values for fixing price and hope that it does not vary drastically on the negative side leading to reduced profit margins. The company wouldnt have problem converting the profit to Japanese Yen as the Indian currency is fully convertible in the current account. Business in India Doing business in India is all about knowing the system, reading the signals (political and economic) as well as understanding the mood of the market before making investment decisions. The country is politically stable having a parliamentary system of democracy, economically growing rapidly at around 8% in spite of economic downturn, culturally diversified and technologically advanced. It has an efficiently structured business enterprise system with regulatory laws in place which are updated regularly, in keeping with the needs of the industrial and management systems. It is the home to a huge middle class population whose purchasing power parity is rapidly growing which itself forms to one of the biggest consumer bases in the world, besides the growth potential, relatively low risk on investment, easy availability of highly skilled manpower, established contract law, developed legal system, modernizing stock markets, national banking system and democratic institutions constitutes t o some of its advantages. Indias return on investment is one of the highest in the world at 19% compared to Chinas at 14% owing to efficient use of capital, the reason for it is the cost of doing business in India is lower than most countries of the world because of the availability of inexpensive labour and advanced telecommunications (Source: Doing Business in India 2009, WB IFC). The business culture of India is a reflection of the various norms and standards followed by its people. It is so diversified that it changes between every province affecting the way business is done. A sound knowledge of Indias cultural practices and business etiquettes is necessary for any trade or business venture within the country. A proper understanding of culture and business etiquette would not only demonstrate a respect for India but will also create a feel good factor amongst the prospective clients. Culturally and as a mark of politeness, Indians have difficulty in saying no, this could be a stumbling block in negotiations and in closing contracts. The notion of time, time management, punctuality is still an anathema in India. It is more to do with the mindset and ingrained in the Indian culture. It would not be surprising if meetings are postponed, re scheduled, cancelled or organized at a very short notice. Bureaucratic hurdles and a laidback approach to work in the gove rnment circles results in delay in processing and overload of paperwork, hence immense patience is necessary for any business transaction. Also due to the lack of infrastructure and inadequate supply chain management, doing business need to be carefully organised and should be ready to overcome such hurdles. The companies follow the hierarchical system and decision making is usually from the top to bottom (Sandy Naidu, 2008). All companies doing business in India must comply with the regulatory laws under the Companies Act, 1956. It is mandatory for every company in India to register its Articles and Memorandum of Association with the Registrar of Companies (ROC) and should accompany Declaration of Compliance which must be duly stamped and signed by an advocate of the High Court or Supreme Court or chartered accountant in whole time practice, Notice of the situation of the registered company, Particulars of Directors and the ROCs letter indicating the approval of the nomenclature of the company in original. Automotive in India The automobile industry in India is the ninth largest in the world with an annual production of over 2 million units. It emerged as Asias fourth largest exporter of automobiles, behind Japan, South Korea and Thailand. Following economic liberalization in India in 1991 which included opening for international trade and investment, deregulation, initiation of privatization, tax reforms and inflation-controlling measures, the Indian automotive industry has demonstrated sustained growth as a result of increased competitiveness and relaxed restrictions. The industry clearly stands out as a significant contributor to the economic growth as it contributes to almost 4% to the GDP, accounting for about 5% of the total industrial output (KPMGs India Automotive Study, 2007). The Indian automobile industry has seen rapid technological change over the last decade in terms of both product characteristics as well as manufacturing processes. At the same time, technological changes and the deepening of technological capabilities have been confined not only to the car manufacturers but also to the auto components industry. The industry has witnessed an unprecedented boom in recent years, owing to the improvement in living standards of the middle class and a significant increase in their disposable incomes added up with easy availability of car loans, affordable rates of interest, smooth repayment facilities and the deductions offered by the retailers (KPMGs India Automotive Study, 2007). Keeping that in mind, most of the major global car manufacturers have established a presence, either through their subsidiaries or through Joint Ventures. These manufacturers have access to the latest technology in product, manufacturing process terms and range of products usin g which trying to make inroads into the Indian market. This has helped transform the technological landscape of the Indian car market by segmenting itself with all varieties of car models like the small cars, mid-size cars, luxury cars, super luxury cars and sports utility vehicles. The constant changes in the existing car models with regard to design, innovation, technology and colours have led to a fiercely competitive market. In spite of all these, the small cars still hold the major market share in terms of sales, making most of the manufacturers to develop cost effective technology to compete in that segment, since the consumers are extremely cost-conscious and have greater awareness towards the latest technologies. Seeing the rapid growth of vehicles in the country, government of India introduced range of policies to tackle vehicular pollution, as a major step towards this, India-2000 norms were introduced, which is Euro-I equivalent. Subsequently Bharat Stage-II (Euro-II equivalent) norms were put into place for passenger cars and multi-utility vehicles and now BS-III BS-IV norms are being adopted in highly polluted cities (Chikkatur, Ananth Sagar, 2007) . At the same time, government has also mandated a reduction of a number of critical pollutants from automobile fuels. Meeting these standards requires the implementation of some combination of technologies such as fuel injection, multi-valve engines, catalytic converters, fixed exhaust gas recirculation and need substantial change in engine design (A.D.Sagar P.Chandra, 2006). All these factors like intense competition, customers price sensitivity, increasingly sophisticated demands and progressively tighter emission standards have acted in concert to place a tremendous pressure on the manufacturers to reduce costs as well as offer an improved and wider range of technological features to their Indian and global customers. This, in turn, has resulted in a series of changes in the technological landscape of the Indian automobile industry. Challenges for Indian Automotive Industry Among the many issues facing the Indian automotive industry, the biggest by far is the poor road infrastructure. Indias road network, comprising of a modest national highway system is woefully inadequate and shabby and can barely keep pace with the auto industrys rapid growth. Most roads are single-lane roads crowded with two-wheelers, bullock carts, pedestrian humans and even cows. Traffic laws are not well enforced leading to one of the highest per-capita accident rates in the world. Secondly, attracting and nurturing talented manpower not only for the creation of better and reliable products but also for servicing and maintenance throughout the life cycle of the product. Thirdly, the massive increase in the cost of input materials like steel which has increased by almost 40%, copper by 45% and natural rubber by 40% and also the significant tariffs imposed on import products and components combined with the inconsistency of currency exchange rates make localization compulsory for c ompanies entering the Indian market. Some of the other issues are like inadequate testing facilities and inspection, maintenance and certification system. Presently the country has testing facilities at the Automotive Research Association of India and the Vehicle Research and Development Establishment, but the need for additional and more extensive test facilities has become clearer in the past few years. The country has Inspection and Maintenance policy but it is widely regarded as having only limited effectiveness and an upgraded inspection, maintenance and certification system with better enforcement is urgently needed (Automotive Mission Plan 2006- 2016, Dec 2006). Challenges for Nissan in India Other than the challenges discussed above, that is existing in the automobile sector in India, Nissan will have to overcome some of its own operational challenges like teaching the mindset of ‘Kaizen to its workers and local suppliers and to constantly and consistently raise their quality standards. Kaizen simply means continuous or constant improvement. In Japanese Kai means â€Å"to take apart† and zen means â€Å"to make good.† Together these two words mean to take something apart in order to make it better. Kaizen is based on the fundamentals of scientific analysis in which you â€Å"take apart† the elements of a process or system to understand how it works, and then discover how to influence or improve it. Continuous improvement is the small, gradual, incremental changes applied over a long period of time that add up to a major impact on business and quality results, the realisation of how important a smallest idea is in attaining greatest results. As part of that, under the guidance of team of engineers from Nissan and Honda, Caparo India, the Indian unit of a British auto parts maker that manufacturers steel body panels and other metal parts, have built up a new assembly lines using the Japanese and Taiwanese factory equipment and have effectively adopted Kaizen management (Source: The New York Times, Jun 26, 2008). The other threat the company has is, entering a market segment that is highly competitive, dominated by old players like Maruti-Suzuki, Hyundai Motors and Tata Motors, which together hold majority of the market share for so many years building the confidence of the customers, making it a late entry. The first car to be revealed by Nissan from the platform of Nissan Micra is going to compete with established and highly selling brands like ‘Swift of Maruti-Suzuki, ‘Getz of Hyundai Motors and ‘Indigo of Tata Motors, two of this brand are also exported to Europe. Conclusion But in spite of all these challenge and threat factors, the company positions itself well and capitalise on its strengths like major global presence making it a reliable and approved international brand, commendable presence in the Europe market, good tie-ups with local Indian manufacturers like Bajaj, Mahindra and Ashok Leyland enabling them the ease of penetration by understanding the needs of customers and customising it accordingly. More than that, since the Indian car industry is expected to grow from 2 Million to 8 Million units by 2020, gives considerable opportunity to all players and Nissan could be one of the main gainers keeping in mind its international reputation and standards. References * Ambuj D. Sagar Pankaj Chandra (2006), Technological Change in the Indian Passenger Car Industry, Indian Institute of Management * AMP- Automotive Mission Plan 2006- 2016 The Department of Heavy Industries, Government of India (Dec 2006), www.siamindia.com/upload/AMP.pdf * Chikkatur, Ananth, and Ambuj Sagar (2007), â€Å"Cleaner Power in India: Towards a Clean-Coal-Technology Roadmap†, Indian Institute of Management * Doing Business in India 2009, World Bank and International Financial Corporation * KPMGs India Automotive Study 2007, ‘Domestic Growth and Global Aspirations, KPMG International, 2007. * Sandy Naidu (2008), A Detailed Pocket Guide To Indian Business Culture, IQebooks.com * Scott Gallagher (2005), Why Does Firm Performance Differ? * Business Standard, May 13, 2008, www.business-standard.com/india * Drive Inside.com, Oct 18, 2008, www.driveinside.com/News/Press-Releases/55XGNS/NISSAN-WILL-BE-FIRST-AUTOMAKER-TO-EXPORT-FROM-ENNORE-PORT.aspx * Rediff India Abroad, Apr 10, 2009, http://www.rediff.com//money/2009/apr/10nissan-micra-in-india-in-2010.htm * The Hindu Business Line, Sep 30, 2009, www.blonnet.com/2009/09/30/stories * The Japan Times online, May 14, 2008, http://search.japantimes.co.jp/cgi-bin/nb20080514a2.html * The Economic Times, Sep 27, 2009, http://economictimes.indiatimes.com/news/ news-by-industry/auto/automobiles/Nissan-to-launch-sports-car-Z370-in-India-in-2010/articleshow/5059873.cms * The New York Times, Jun 26, 2008, www.nytimes.com/2008/06/26/ business/worldbusiness/26iht-nissan.4.14028225.html * www.fleetcar.ie/index.php/news/169-nissan-puts-zero-emissions-at-centre-of-its-global-strategy * www.nissannews.com * www.stylusinc.com/business/india Bibliography * Indian Brand Equity Foundation, www.ibef.org/economy/economyoverview.aspx * Robin John Grazia Letto Gillies (2007), Global business strategy * SIAM -Society of Indian Automobile Manufacturers, www.siamindia.com * Tilman Altenburga, Hubert Schmitzb Andreas Stamma (2007), Breakthrough  Indias Transition from Production to Innovation * www.carazoo.com/autonews/0603200802/Nissan-keen-on-Indiaas-key-production-centre-for-future-cars * www.mfg-matters.com/kaizen/ * www.nissan-global.com/EN/DOCUMENT/HTML/FINANCIAL/SPEECH/2008/e-20080513.html

A Portfolio of Atlantis Casino Resort

Abstract This portfolio pertains to Atlantis Casino Resort in Reno, Nevada. It discusses the facility mix adopted by the resort. Its unique selling point (USP) is drawn from its excellent customer service, reputation for luxury, and a range of activities it offers for adults, children, and the whole family. The Atlantis partners with transport companies that promote environmental sustainability, specifically those that use advanced technology in transport system. The Miossec model is applied in analysing how the resort might be a focus of destination development. This portfolio identifies problems and challenges faced by the Atlantis, as well as the means through which the resort addresses them Introduction This portfolio is about Atlantis Casino Resort. It provides a discussion of an outline of the facility mix of this resort and whether its facilities have helped in creating a unique selling point (USP). It also tackles the utilisation of sustainable transport alternatives and how the chosen resort has responded to this. Moreover, this portfolio looks at how Atlantis Casino Resort has been a focus of destination development, addressing this point by employing a resort-destination development model, the Miossec Model. Finally, the brief discusses development problems and management challenges identified by the resort and how they are being addressed. An Outline of the Facility Mix of Atlantis Casino Resort Atlantis Casino Resort is a deluxe hotel and casino located in Reno, Nevada. Its facility mix includes approximately 1,000 rooms and Jacuzzi suites, nine operating restaurants, a night club that plays live music, a concierge hotel tower, a spa, a salon, and a family entertainment room. It also offers more than 150 table games and 1,400 slots in its casino (Dallas, 2006). Aside from these, its facility mix includes Las Vegas-type shows and water sports, such as windsurfing. The resort has a tropical theme that complements its excellent customer service, apart from its reputation for luxury. It has a 14-acre waterscape that serves as its centerpiece with grottos, lagoons, and other attractions. What is unique about its facilities is this combination of adult, children, and family activities, which other casino resorts nearby do not offer (Kraus, 2007). These facilities have helped the Atlantis in creating a unique selling point (USP). USP refers to an understanding of the products or services’ uniqueness from that of the competitors (King, Kerr, Jefferies, et al, 2005). In the case of the Atlantis, such USP can be initially seen in the combination of deluxe hotel and casino, as well as its other unique features described above. It would not be common for a casino to also have a complex resort system and other facilities that the Atlantis offers, making the entire business case to cater to various ages, including adults and children. The Atlantis has hence captured these target markets in its product offering. The casino and the night club are certainly places for older people, whilst the family entertainment centre, the waterscapes, and the water sports are for children and the whole family. This would mean that a family who wants to stay in a place that offers a range of activities would choose to come to the Atlantis over some others because of its unique features. It is worth-mentioning why resorts like the Atlantis need a unique selling point. This is because the USP serves as the reason why one’s product differs from everyone else’s, which draws customers toward the resort, thereby selecting it over all the others. According to King et al. (2005), USP can be as simple as offering the friendliest welcome or the easiest booking system. In the case of the Atlantis, its unique selling points are its reputation for luxury, excellent customer service, and various product offerings, as mentioned above. Moreover, why a resort needs a USP is because it serves as a clear benefit for the resort, whereby it enables the clients to be willing to pay to satisfy their needs (King et al., 2005). An important point to consider in line with the above heading is the idea that repositioning – or changing the current position of a certain business – can take place because of various circumstances, such as the emergence of a new competitor. This is seen in an example where conference venues in some UK resorts failed to continue to fulfill the needs of customers due to lack of maintenance and product enhancement (Davidson and Rogers, 2007). In the case of the Atlantis, it may be analysed that how it has responded to the use of sustainable transport alternatives has contributed to the resort’s reputation for excellent customer service. Problems and Challenges The problems that the resort faces are the unavailability of seasonal employees during peak season and lack of job security, which is a big concern amongst employees (Glass Door, 2014). The challenges include how it can attract visitors for its family-oriented activities during lean season and increase its revenues from these activities during this period (Glass Door, 2014). How Atlantis Casino Resort Has Responded to the Use of Sustainable Transport Alternatives In terms of the use of sustainable transportation alternatives, the Atlantis Casino Resort uses transport vehicles with latest technology and low carbon emission to protect the environment (Atlas Choice, 2014) in order to accrue with its existing sustainability policy. Encouraging its employees and visitors to use public transportation will contribute to reduction in automobile pollution, a green option for transport utilisation. The Atlantis partners with green transport companies that use the latest technology for environmental friendliness. This is in accordance with the resort’s green ethos and carbon footprint (Atlas Choice, 2014). Since the Atlantis safeguards its reputation for excellent customer service, its transport service is free, fast, and convenient, and guests do not have to wait a long queue in order to enjoy the service, (Airport Shuttles, 2014), neither do they have to be bothered by carbon emissions that can be exhumed by its vehicles. This is because the resort adopts the latest non-carbon emission technology in its transport system (Atlas Choice, 2014). The transport alternative system used by the Atlantis may be viewed as sustainable because of the environmental friendliness it offers. How the Resort Might be a Focus of Destination Development This section discusses the means through which Atlantis Casino resort might be a focus of destination development, using a resort destination development model – the Miossec model. First to consider is the fact that Atlantis Casino Hotel might be a focus of destination development since it is located in a region (Reno, Nevada) with many other resorts that offer more or less similar services. Examples of these are the Aquarius Casino Resort, the Avi Resort and Casino, and the Downstream Casino Resort, which are all a combination of casino and resort. Hence, the reason for the Atlantis to be a focus of destination development is the fact that it competes with others for similar markets and must identify a suitable market positioning based on its relative strengths (e.g. Murphy, 2008). According to the Miossec model, the development of a resort area in a peripheral location starts from its initial establishment towards being a composite hierarchical tourism area in terms of historical dimensions (Krakover and Gradus, 2002). This model may be considered the most logical geographical description of destination development as it depicts a progression of such destination from its infancy through maturity (Gunn, 2014). Along with the stages of development, the reaction of prospective and actual tourists on one hand, and transportation developments on the other, are two separate aspects. The Miossec model depicts the parallel development taking place in the Atlantis Casino Resort, transportation, and number of customers. Hence, this model impliedly assumes a direct relationship amongst the growing number of attractions, transportation improvements, and increasing customer demand in the Atlantis (Krakover and Gradus, 2002). The model in fact focuses on the spatial and te mporal development of destination in relation to physical change. It identifies the interaction of four major elements influencing the resort’s destination development: (1) â€Å"the characteristics of the destination; (2) tourist behaviour; (3) mode of transportation; and (4) attitudes of residents and decision-makers† (Latkova, 2008, p. 19). Taking the Miossec model, Atlantis Casino Resort has gone through minimal developments in its initial phase. During the second phase, it went through a development as a pioneer resort in its area. In the third phase, it presented noticeable changes through which there has been expansion of a system of resorts (where the Atlantis is part) to serve an increasing number of tourists, and where residents either accept or reject the presence of such tourism development. The last stage has seen further development of the area (Latkova, 2008). Since the Atlantis is already an established luxury hotel resort in Reno, the Moissec model of destination development is relevant, particularly in this fourth stage. In terms of where the Atlantis Casino Resort would be positioned in the Moissec model, such positioning is in its destination characteristics (being a casino resort that also features family-oriented activities), analysis of tourist behaviour, considerations for an alternative transport system, and the way it takes into account the attitudes of decision-makers, such as the local government with whom it partners for environment-related matters (e.g. Latkova, 2008). In order to be different from all the others and strengthen its USP as described earlier, Atlantis could pursue the development of a visitor attraction that harmonises with its adjoining environment, such as an aquarium park that can showcase the destination and add to the number of customer activities. It could also ‘adopt’ an adjacent natural attraction and take steps to ensure it can be adequately maintained, for example, by sourcing outside funding. Here, one can see the attitudes of decision-makers being considered and applied to the development, which is the model’s key element influencing the destination development (e.g. Latkova, 2008). It has been noted that the value creation of resorts does not match that of Porter’s value chain configuration due to the non-sequential operational process embodied in a resort destination (Murphy, 2008). Hence, the destination development that Atlantis Casino Resort shall pursue does not adopt Porter’s principle but a ‘value fan,’ (Murphy, 2008) which considers a site and individual focus for its destination activities, sustained by administrative functions that are tasked to aid the entire destination. In order to assimilate the value fan into the resort’s strategic management approach, the resort must manage its tourism product mix configuration (Murphy, 2008), where the right blend of products are being developed to fulfill customer expectations and thereby create the best value prospects for them. In the Atlantis’ destination development pursuit, it is necessary to address some major principles, such as ensuring the purpose of every development item; designing for people; satisfying both functional and aesthetic aspects of the development; establishing substantial and appropriate experiences; fulfilling technical requirements; and meeting customer needs for the lowest possible cost, to mention a few (Murphy, 2008). Development Problems and Management Challenges The identified development problems for Atlantis Casino Resort are the following: (1) a possible lack of balance/leverage between financial costs and revenue from the development (Vogel, 2012); and (2) lack of sufficient knowledge and skills of existing employees for new areas of development, i.e. the aquarium park that features exhibition shows inside the aquarium, which require skillful staff (Robinson, Luck, and Smith, 2013). The Atlantis addresses the first problem by conducting a financial feasibility study, which can situate the new development within measurable and realisable goals without incurring costs that exceed the returns. For the second problem, this is tackled by providing training to staff to match the requirements of the new developments (e.g. Zainai, Radzi, Hashim et al., 2012). The management is challenged by the presence of various hotel resorts within the same area where it is located, which offer similar activities to visitors. It is therefore faced with the task of differentiating its range of product offering and activities, but is further delimited by the nature of the business, where the Porter’s value chain principle is not applicable (e.g. Murphy, 2008). This is addressed by conducting an effective marketing strategy that features the resort’s uniqueness and leverage. The Atlantis is also challenged by the need to identify excellent programmes and product schemes for the lowest price possible (Murphy, 2008). This will be addressed by doing a financial study to ensure revenue despite the lower cost offering. Conclusion This brief provides a discussion of the facility mix offered by Atlantis Casino Resort; how it responded to the utilisation of sustainable transport alternatives; how it might be a focus of destination development; and development problems and management challenges thus identified. The Atlantis is a complex facility mixing hotel and casino, with a reputation for luxury and customer service. These aspects have contributed to its USP. The resort has responded to the use of sustainable transport alternatives by partnering with environmentally friendly transport companies. The Miossec model is used to explain how the Atlantis might be a focus of destination development. This model states that there is a parallel development occurring in the resort, the transportation, and the number of customers. Development problems include a potential lack of balance/leverage between financial costs and revenue; and lack of sufficient knowledge and skills of existing employees for the new development. The Atlantis is also challenged by the presence of casino resorts within its area that offer similar services, as well as the identification of excellent programmes and product schemes for the lowest price possible. References Airport Shuttles (2014) Concierge Tower at Atlantis Casino Resort Spa. Retrieved on April 23, 2014 from http://www.airportshuttles.com/reno/concierge-tower-at-atlantis-casino-resort-spa.html Atlas Choice (2014) Reno Atlantis Casino Hotel. Retrieved on April 25, 2014 from http://www.atlaschoice.us/cheap-car-hire/nevada/reno/reno_atlantis_casino_resort/address/41910/3800-s-virginia-street-reno-nv-89502-usa-nevada Dallas, J. (2006) Casino Shrine. FL: Kai Dee Marketing. Davidson, R. and Rogers, T. (2007) Marketing Destinations and Venues for Conferences, Conventions and Business Events. UK: Butterworth-Heinemann. Glass Door (2014) Atlantis Casino Resort Spa. Retrieved on May 5, 2014 from http://www.glassdoor.com/Reviews/Atlantis-Casino-Resort-Spa-Reviews-E348105.htm Gunn, C. A. (2014) Vacationscape: Developing Tourist Areas. London: Routledge. King, B. (1997) Creating Island Resorts. London: Routledge. King, C., Kerr, A., Jefferies, M., and Brombley, D. (2005) Travel and Tourism. Oxford: Heinemann Educational Publishers. Krakover, S. and Gradus, Y. (2002) Tourism in Frontier Areas. England: Lexington Books. Kraus, N. P. (Ed.) (2007) Frommer’s USA. NJ: Wiley Publishing. Latkova, P. (2008) An Examination of Factors Predicting Residents; Support For Tourism Development. Ann Arbor: ProQuest LLC. Murphy, P. (2008) The Business of Resort Management. London: Elsevier Ltd. Robinson, P., Luck, M., and Smith, S. (2013) Tourism. Oxfordshire: CABI International. Vogel, H. L. (2012) Travel Industry Economics: A Guide for Financial Analysis. NY: Cambridge University Press. Zainai, A., Radzi, R., Hashim, R., Chik, C. T., and Abu, R. (2012) Current Issues in Hospitality and Tourism: Research and Innovations. UK: Taylor & Francis Group.

Brand Management Summary Essay

Constructs: * Consumer based brand equity: The differential effect of brand knowledge on consumer response to the marketing of the brand. It involves consumers’ reactions to an element of the marketing mix for the brand in comparison with their reactions to the same marketing mix element attributed to a fictitiously named/unnamed version of the product or service. * Brand knowledge: a brand node in memory to which a variety of associations are linked: * Brand image: set of brand associations in a consumers’ memory. It are perceptions about a brand as reflected by the brand associations held in consumer memory. Brand image is defined by: * Type of Brand associations: * Attributes: Non-product related or product related. * Benefits: Functional, experiential or symbolic. * Attitudes * Favorability, Strength and Uniqueness of Brand associations * Brand awareness: recall and recognition by consumers. It is about the strength of the brand node or trace in memory. Findings: * A brand is said to have a positive (negative) customer-based brand equity if consumers react more (less) favorably to the product, price, promotion, or distribution of the brand than they do to the same marketing mix element when it is attributed to a fictitiously named or unnamed version of the product or service. * Favorable CBBE can lead to enhanced revenue, lower costs, greater profits, larger margins, less elasticity, increased marketing communication effectiveness and licensing opportunities. * Pricing, distribution, advertising and promotion strategies stimulate CBBE. * Building CBBE requires creating a familiar brand name and a positive brand image. * Measuring CBBE can be done (1) indirectly by measuring sources of brand knowledge or (2) directly by measuring the effects of brand knowledge on consumer response to elements of the marketing  mix. * Managing CBBE: (1) take a broad and long-term view of marketing a brand (2) specify the desired consumer knowledge structures and core benefits for a brand (3) consider a wide range of traditional and nontraditional advertising, promotion and marketing options (4) coordinate the marketing options that are chosen (5) conducting tracking studies and controlled experiments (6) evaluate potential extension candidates. Implications: * Marketing activity can potentially enhance or maintain consumers’ awareness of the brand or the favorability, strength or uniqueness of certain associations. * This enables making short- and long-term decisions better and more insightful. Article 2: Esch, Franz-Rudolf, Tobias Langer, Bernd H. Schmitt and Patrick Geus (2006), â€Å"Are Brands Forever? How Brand Knowledge and Relationships Affect Current and Future Purchases,† Journal of Product & Brand Management, 15, 2, 98-105 Constructs: * Brand attributes: awareness, image, perceived quality, perceived value, personality, and organizational associations. * Brand knowledge attributes: awareness and image, where awareness is a necessary condition to build brand image. * Brand relationships: * Satisfaction: the exchange aspects of a relationship. It’s about giving vs. receiving. * Trust: the feeling that is the outcome of a communal relationship with a brand. * Attachment: a longer-lasting, commitment-inducing bond between the brand and the consumer. Satisfaction and Trust lead to brand Attachment. * Behavioral outcomes: Current purchase behavior and future purchase behavior. Findings: * Current purchases are affected by brand image directly and by brand awareness indirectly. * Future purchases are not affected by either dimension of brand knowledge directly, but brand knowledge does affect future purchases via a brand relationship path that includes brand satisfaction, brand trust and attachment to the brand. Concluding, brand knowledge is not sufficient to build long-term brand relationships. However,  relationship variables are critical for predicting future purchases as well as current purchases. * Brand awareness does not significantly affect brand satisfaction and brand trust. * Brand awareness affects brand image and both are direct determinants of current consumer purchase behavior. Implications: * Currently, brand managers measure brand awareness and brand image. They should also consider brand relationship measures and develop strategic and tactical initiatives that ensure that consumers are satisfied with the brand, trust it and feel attached to it if they wish to achieve long-term success. Lecture notes (27-08-2012): Introduction to Brand Management Once, products were un-differentiable, often sold loose, the quality varied significantly and many people made the same thing. To make buyers prefer your ‘commodity’, brands were introduced: * A name, sign or symbol intended to identify the goods & services of one (group of) sellers and to differentiate them from those of competition. It creates reputation, awareness and prominence. Organizations perceive brands as physical products, where customers perceive it as psychological products, since they want to buy brands and not simply products. A product is anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a need or want. It consists of 4 levels: Core benefit, tangible product, augmented product and total product. * A brand is a product, but one that adds other dimensions that differentiate it in some way from other products designed to satisfy the same need. It makes products different in a rational, tangible, symbolic, emotional and intangible way. In reality, the most valuable assets are intangible ones. A brand is important for * Customers because: it’s an identification of a production source, it assigns responsibility to the maker, it reduces risk, it reduces search cost, it forms a bond / pact with the maker of the product, it is a symbolic device, and a sign of quality. * Manufacturers because: it allows identification to simplify handling or tracing, it allows legal protection of unique features, it’s a signal of quality level, it endows unique associations to products, it’s a source of competitive advantage and a source of financial returns. As long is something is perceived as different, from the product category, it is branded. It should be given a label and provided a meaning. Types of things that can be branded: 1) Physical goods 2) Services 3) Retailers & Distributors 4) Online products and Services 5) People and Organizations 6) Sports, Arts and Entertainment (experience goods like Walt Disney and Pixar) 7) Geographic Locations 8) Ideas and Causes. Brands Fail because market conditions change, where some companies fail to adapt (inertia). Business Challenges & Opportunities: * Savvy customers: More experienced customers demand more than respect. * Brand proliferation: few products are ‘mono’ branded nowadays. Often, complex brand families and portfolios are required. * Media fragmentation: New methods of communication arise (internet) and expenditures appear to shift from advertising to promotion. * Increased costs: Developing new products is costly so team up with other brands. * Increased competition: Differentiation becomes more difficult, markets start to be more mature and low-priced competitors arise. Consider brand extensions. * Greater accountability: Engage short-term performance orientation, make sure you have your figures right. Customer Based Brand Equity: (1) Differential effect that (2) brand knowledge has on (3) consumer response to the marketing of that brand. Marketing a product should make the consumers’ response more favorable compared to not branding the product. Types are: * Consumer brand equity: A positive, strong, active and unique meaning of the brand. * Financial brand equity: enables earning more in  the short and long run. The Strategic Brand Management Process (to build, measure and manage brand equity): 1. Identify and Establish brand positioning and values: It is your attempt to get in the mind of the consumer in a distinct and valued place. This includes mental maps, a competitive frame of reference, points of parity & difference, core brand values and brand mantra. It is also about who is in your market. 2. Plan and implement brand marketing programs: The mixing and matching of brand elements (visual or verbal?), integrating brand marketing activities and leverage of secondary associations that convey meaning to consumers. 3. Measure and interpret brand performance: Use brand value chains (how will our activities influence what customers think, feel and do), audits, tracking, and equity management systems. What is a Business Value Chain: a. Customer brand equity management goal: build, sustain, and leverage a strong, active and unique meaning of the brand. b. Financial brand equity goal: to enable more earnings in the short and long run. 4. Grow & Sustain brand equity (how to improve things): concepts that are used are brand-product matrixes (shows all brands and products sold by one firm), brand portfolios and hierarchies, brand expansion strategies and brand reinforcement and revitalization. The 6 deadly sins of branding: 1. Brand Memory loss: don’t forget what a brand stands for, don’t change identity. 2. Brand Egoism: overestimating your (supplying) capabilities and importance. 3. Brand Deception: Don’t include fictional ingredients that appear healthy or try to cover the reality of your product. 4. Brand fatigue: Companies are bored with their brands, causing a lack of creativity. 5. Brand paranoia: Too much focus on competition instead of product quality. 6. Brand irrelevance: Not staying ahead of the product category’s market. Lecture notes WC week 1 (29-08-012 / Red Bull Case): Sources of brand equity for Red bull: * First mover advantage, premium pricing, and special ingredients  (taurine). * New market creation (energy drink), and an all round occasion product. * Sampling often, source efficacy, cool image, limited availability, and specific associations such as sports and athletes. Their strategy is a global approach. Tactics are always similar, and sports are always important. How does the marketing program contribute to the brand equity: * They have a broad positioning, aiming for high quality and high price, being a premium product and being exclusive. Some terminology: * Disruptive products are those that break the rules, the normal way of doing business. * They do so ‘below the line’ by using exceptional promotion activities. * They do so ‘above the line’ by using out of the box marketing. * Share of voice: Share of expenditures on advertising, as a share of the product category. * Share of belly: Share in all types of drinks consumption. * The most important things for branded products are involvement and interest. * ‘Jump on the bandwagon’ means following the mainstream (Bullit vs. Red Bull). Why are Red bull’s advertisements so successful and how do they maintain their marketing monumentum? * High integration and a consistent program. * Limited availability, which causes buzz marketing. * Their ads use a specific humorous tone of voice, which builds awareness. Findings of the energy drink experiment: * All energy drinks increase blood pressure. Placebos only do so under high motivation. Red bull and brand extensions (the key to success is a ‘fit’ with your brand): * What did they do already? Shots, different tastes, Red Bull cola, Premix with alcoholics, refrigerators, and using different sizes. * Which ones were successful? Different sizes, sports events, magazines, shows, and the flagship store that sells a lot of merchandise. * Which ones were unsuccessful? Different tastes, Cola, and energy shots. Week 2: Branding Objectives: Values, Identity and Positioning Article 1: Brown, Tom J., Peter A. Dacin, Michael G. Pratt and David A. Whetten (2006) â€Å"Identity, Intended Image, Construed Image, and Reputation: An Interdisciplinary Framework and Suggested Terminology,† Journal of the Academy of Marketing Science, 34, 2, 99-106 Constructs according to CED (Central, enduring, and distinctive organizational level of analysis): * Identity: An individual’s self-difinition / who are we as an organization. * Organizational identity: the property of a social group rather than an individual. * Intended Image: mental associations about the organization that organization leaders want important audiences / stakeholders to hold. * Construed image: Mental associations that organization members believe individuals or multiple people outside the organization hold about the organization. * Reputation: mental associations about the organization actually held by others outside the organization. Findings: * Image concerns what an organizational member wants others to know about the organization, while reputation is a perception of the organization actually held by an external stakeholder. * Corporate associations belong with the stakeholder, not to the organization. They may be influenced by a variety of outside sources: competitors, industry analysts, consumer activists and the media in addition to communications from the company. Implications: * Not mentioned Article 2: Coleman, Darren, Leslie de Chernatory and George Christodoulides (2011) â€Å"B2B Service Brand Identity: Scale Development and Validation,† Industrial Marketing Management, 40, 1063-1071 Constructs: * B2B service brand identity: the strategist’s vision of how a B2B service brand should be perceived by its stakeholders. It consists of the following scale dimensions: * Marketing Culture: unwritten policies and guidelines which provide employees with behavioral norms. It’s also about the importance an organization places on the marketing function. * Client relationship management: relationships with customers are the  cornerstone of industrial marketing. Therefore, the quality of CRM is very important. * Corporate Visual identity: logos can simplify the process of communicating brand benefit by being visual metaphors. They also help distinguishing a brand. * Integrated marketing communications: they help an organization’s brand identity manifest. For B2B, communications focus on organization rather than products. * Brand personality: The strength, favorability and uniqueness of the brand personality association. It should be easy to describe by clients, and f avourable. Findings: * After two factor analyses, the paper chose to rename some dimensions: * Employee & client focus: The organization treats employees & clients as an essential part of the organization, will help them in a responsive manner, will discover and respond to their needs, and top management is committed to providing quality service. * Corporate visual identity: Our font and logo is an important part of our visual identity, which makes us recognizable. * Brand personality: Associations are extremely positive and favorable, and clients have no difficulty describing them. * Consistent communications: There’s a good understanding of the strengths and weaknesses of all communication tools. Furthermore, Advertising, PR and Sales are providing consistent messages. * Human resource initiatives: There are employee-training programs designed to develop skills required for acquiring and deepening client relationships. Moreover, the organization regularly monitors employees’ performance. * The model is now empirical instead of conceptual. In addition, it is a synergistic network since all dimensions are highly correlated. Implications: * When managers want to asses the effectiveness of B2B service brand identity efforts, they should focus on either one or multiple of the above mentioned dimensions and measure them over time. Article 3: Chernev, Alexander, Ryan Hamilton and David Gal (2011) â€Å"Competing for Consumer Identity: Limits to Self-Expression and the Perils of Lifestyle  Branding,† Journal of Marketing, 75, May, 66-82 Constructs: * Self-expression of lifestyle and social identity: this is enabled by a huge degree of customization for certain products and also by social media. Findings (keep in mind that all findings discuss short-term effects): * Consumer brand preferences are a function of the activities they were involved in prior to evaluating a given brand. This finding holds because the need for self-expression is finite and ultimately can be satiated. This means that the need for self-expressive brands decreases as the number of alternative means of self-expression increases. * The extent to which consumers use brands to express their identities is not limited to self-expressive brands in the same category but it is also a function of the availability of alternative means of expressing identity. Satiation is caused by: * Personal brand relevance: how close is the brand related to your identity. Brands evaluated later in a set were more likely to be rated lower or equivalent in terms of personal relevance. * Perceived brand uniqueness: How brands are perceived to be different. * Consumers’ willingness to pay. * Increasing the prominence of self-expressive brands that are already a part of a consumer’s identity is likely to weaken future brand preferences. This holds between and across product categories. This effect is more pronounced for symbolic than functional brands: * Brand associations should be distinguished: Functional and symbolic associations. * Increasing the need for self-expression (e.g. by threatening identity) has the effect of strengthening brand preferences. * Self-expressive behavioral acts such as product customization can lead to identity saturation, weakening consumers’ brand preferences. Implications: * Brands might possibly compete across categories and become a part of a person’s identity. * Lifestyle branding has proven to be successful for many brands. However, managers may be trading fierce within-category  functional competition for fierce across-category symbolic competition when doing so. All self-expressive brands could end up competing with one another, and possibly even non-brand self-expressive items and social media. * More practical: It might be unattractive to have a shop with self-expressive products next to another shop selling such (Apple Store). Article 4: Naresh, Sheena G. (2012) â€Å"Do Brand Personalities Make a Difference to Consumers?,† , Procedia – Social and Behavioral Sciences, 37, 31-37 Constructs: * When associated to image, brand uniqueness or identity is the arrangement of words, ideas and associations that structure the total perception of the brand. * Brand personality: the set of human characteristics associated with the brand. It makes brands more interesting, memorable, and it makes people more aware. The Big 5: * Sincerity: Down to earth, honest, wholesome, cheerful (Douwe Egberts). * Excitement: Daring, spirited, imaginative, up to date (Porsche). * Competence: reliable, intelligent, successful (ABN AMRO). * Sophistication: Upper class, Charming (Mercedes). * Ruggedness: Outdoorsy, Tough (Levis, Nike, Marlboro). * Brand personality statement: what personality managers want their consumers to perceive. * Brand personality profile: what the consumers are thinking and feeling about the brand. Findings: * Sentimental brand personalities are common for all fast moving consumer goods. Secondly, most FMCGs are characterized as young, successful and inspiring. Finally, success, friendliness, trendiness, uniqueness, modernization and glamour are often found. Implications: * Marketers should focus on strengthening their strategies by emphasizing personality traits of their brands. This can cause strategic changes in brand positioning or communications. Lecture notes Week 2 (03-09-2012): If your customers don’t know who you are, they won’t buy. You have to show who you are in order to do business. The circle of brand management: * Strategists propose an identity by using a certain strategy marketers and PR build on this strategy by choosing a position and messaging this position (potential) customers generate a brand image based on these messages strategists can again build a strategy to reposition the image of the consumers.  §1: Brand Identity: How strategists want the brand to be perceived: * It explains whether an ad suits the brand, whether new products should be launched inside or outside the brand boundaries, how far can we change our communication style regionally and internationally, or whether sponsorship would ‘fit’ the brand. * Definition: the unique composition of physical, social and psychological components of a brand as far as they are crucial, lasting and remarkable. * What’s the vision & aim of a company, what makes it different, what are its values, what need is the brand fulfilling, what is its permanent nature, and what signs make it recognizable. * Aspects: CED: Central, Enduring (whether it’s consistent over time) & Distinctive. * Components: Physical (external characteristics, logo), Psychological (experiences, character, point of view), Social (spokesperson, category, relationship, users).  §1.1 Heritage, consisting of history, consistency, passion and leadership. Effects are: * (1) Authentic real (2) trustworthy safe (3) intimate warm (4) expert excellence in performance and experience. * Sources are people, the firm itself, and region & nation; human capital, social capital, cultural capital & natural capital. * Country of origin is very important, and countlessly many papers have covered it.  §1.2 Personality & Values: * For the Big Five personality indicators/dimensions, see page 9 article 4. * Prototypical cues help distinguishing things between product categories. It also helps in creating expectance. * Values are stable,  desirable modes of conduct or abstract end-states that direct behavior. Milton R. defined 18 instrumental & 18 terminal values that can be used to find identity. * Core brand values: abstract associations that characterize the 5 to 10 most important aspects or dimensions of a brand. These serve the foundation of a brand strategy, and in particular the POPs and PODs (see page 11). For BMW this would be stylish driving, for Marlboro the cowboy life. * Brand Mantras: the ‘heart and soul’ of a brand: a 3-to-5 word phrase that captures the essence or spirit of the brand positioning and values. Malibu: seriously easy going. Here, campaigns are more about context rather than content; the expression of the brand is more important than the brand itself. Brand mantra’s consist of: * (1) Brand function (Authenticity for NIKE), (2) Descriptive modifier (Athletic for NIKE), (3) Emotional modifier (Performance for NIKE). * Implementing a mantra requires: communication simplification inspiration.  §1.3 Vision: The brand’s dream about the future. It is about shaping the category and improving customers’ welfare. Visions are provocative and can guide short-term behavior by communicating direction. The Brand Identity Prism to the left discusses (1) physique (features, symbols, attributes), (2) Personality, (3) Culture (set of values), (4) Relationship (beliefs and associations), (5) Reflection (consumers’ perception) and (6) Self-image (What the consumer thinks of himself).  §1.4 Brand Image: How the brand is actually perceived: * Identification: Brand awareness & category structure. * Qualification: Brand associations & meaning structure.  §2 Brand Positioning: The part of the brand identity and value proposition to be actively communicated to a target audience. It is the act of designing the company’s offer and image so that it occupies a distinct and valued place in the target customer’s minds. The following paragraphs represent the steps that should be taken when positioning a brand.  §2.1 (step A) Frame of Reference: Who is the target customer and who are the main competitors? Here, we define category membership: * Target markets can be defined by  segmentation. Segmentation can be done on the basis of consumers (descriptive, behavioral, psychographic or geographic) or B2B (nature of the goods, buying conditions, demographics). Combinations are also possible. Criteria: * Identifiability, size, accessibility, responsiveness. * Take into account that there are different types of competition, namely on product type, category or class. In addition, competition may occur at benefit level rather than attribute level (see paper 3 page 8). * When comparing at category level, 1 brand is the reference brand and several others are compared to that. If you’re the reference brand, consider improvements on prices and quality. Be aware that decreases in attributes hurt more than for non-reference brands. When you’re not a reference brand, any POD from the reference brand is a loss. Therefore, reference brand have competitive advantages. * Prospect theory: Extra value diminishes as available gains increase. * When you’re launching a new brand, all ‘usual’ category characteristics will first have to be transferred. ‘Creating’ a category is not advised and very expensive (Subway food). Copying prototypical cues can be used by the follower brand to be accepted in the category (e.g. fast food using Red & Yellow / McDo).  §2.2 (step B) POPs & PODs are chosen after defining the frame of reference: * Points of Parity: How is the brand similar to others in the category, how can they be associated and compared. Moreover, which associations are shared? Category POPs are necessary to be a legitimate and credible product offering within a category. Competitive POPs negate PODs of competitors. * Points of Difference: How is the brand different to others in the category? It’s about brand associations that are unique to the brand and favorably evaluated by consumers. They can be functional (performance related) or abstract (imagery-related). They’re also closely related to unique selling propositions, competitive advantages and distinctive competences. They’re more difficult to obtain than POPs. PODs and POPs can be defined using the following typology: Intrinsic product differentiation, Design/Style differentiation, Symbolic Differentiation, Channel Differentiation, Price Differentiation, Customer Service differentiation, Customer intimacy differentiation. Choosing PODS and POPs  is based on: * Desirability: Relevance, distinctiveness and believability. * Deliverability: Feasibility, communicability and sustainability.  §2.3 (Step C) Establishing POPs and PODs: This can be difficult since many POPs and PODs are negatively correlated (e.g. High quality and low price). Methods that can solve this problem are (1) separation of attributes (2) Leveraging equity of another entity (3) redefining the relationship.  §2.4 Use and usage situation: What is the brand promise and consumer benefit? And what is the occasion when the product will be consumed? The best moment to confront customers with product (advertisements) is when they really need it (e.g. In India, detergent ads are place on top of buses, since everyone does their laundry on the balcony where they see these tops).  §2.5 Statement and tags Are the current looks and ingredients compatible with its positioning? There are multiple elements that will evaluate and choose a brand positioning: 1. The Target audience 2. The compelling benefit 3. The reason why customers should believe the PODs 4. Product Name 5. Product Category Week 3: Special Branding Strategies Article 1: Keller, Kevin Lane and Philip Kotler (2012) â€Å"Branding in B2B firms† in: Handbook of Business-to-Business Marketing, edited by Gary l. Lilien and Rajdeep Grewal, Edward Elgar, Cheltenham, UK. Constructs: * B2B branding: might not be needed because buyers are experienced and fully informed, it’s more about the buying experience, it involves  unnecessary costs, effects are only short-term, calculating ROI is difficult, brand building is complex and because it doesn’t significantly influence the buyers’ final decision. Findings: * The Brand Management Scorecard: a. Managers understand what the brand means to customers. b. The brand is properly positioned.  c. Customers receive superior delivery of the benefits they value most. d. The brand takes advantage of the full repertoire of branding and marketing activities available to build brand equity. e. Marketing and communications efforts are seamlessly integrated. The brand communicates with one voice. f. The brand’s pricing strategy is based on customer perceptions of value. g. The brand uses appropriate imagery to support its personality. h. The brand is innovative and relevant. i. For a multiproduct, multi-brand firm, the brand hierarchy and brand portfolio are strategically sound. j. The firm has in place a system to monitor brand equity and performance. * Steps to build and manage a strong brand: a. Ensure the organization understands and supports branding and the role of brand management. Moreover, internal branding is important (next two steps): b. Horizontal and vertical alignment: branding efforts should be understood by all. c. Brand mantras: (see p10  §1.2) will consistently reinforce and support the brand. a. A General Electric application: for this firm, more then a brand mantra was integrated successfully through 11 different businesses. d. Adopt a corporate brand strategy if possibly and create a well-defined brand hierarchy: (Carefully) decide on brand architecture (distinctive brand elements applied to the different products sold by the firm). Corporate branding is preferred. e. Corporate credibility: competence in delivery and satisfaction for the client. It depends on expertise, trustworthiness and likability. f. Brand hierarchy: Significantly different sub-businesses require sub-brands. g. Frame Value Perceptions: Strive for differentiation and value rather than  commoditization. Framing is about how clients currently think and choose among products and services, and then determining how this ideally should be. h. Link non-product-related imagery associations: Apple is perceived as an innovative brand, where Microsoft is more of an aggressive firm. Consider how dimensions of corporate credibility affect decisions of the B2B customer. i. Uncover relevant emotional associations for the brand: Security, social approval and self-respect definitely play a role. In addition, how do risk and feelings influence a customers decision making? j. Emotions and decision-making: Ultimately, individuals rather than organizations make purchasing decisions. These people are influenced by emotions & ratio. k. Segment Customers carefully and develop tailored branding and marketing programs. Should there be a uniform image within and across firms? l. Segmentation within organizations: the ‘buying center’ brings together initiators, users, influencers, deciders, approvers, buyers and gatekeepers. People fulfill multiple of these tasks, but all should be approached with identical messages. m. Segmentation across organizations: careful customer analysis is required for successful segmentation. Implications: Not mentioned. Article 2: Desai, Kalpesh Kaushik and Kevin Lane Keller (2002) â€Å"The Effects of Ingredient branding Strategies on Host Brand Extendibility,† Journal of Marketing, vol. 66, (January), 73- 93. Constructs: * Line extensions: minor product changes in the host brand, possibly already introduced by others in the category. When these changes are branded, they’re further defined as: * Slot-filler brand expansions: the level of one existing product attribute changes. * New attribute expansion: an entirely new attribute or characteristic is added to the product. * Self-branded ingredient: the host brand includes and creates a new self-brand. * Co-branded ingredient branding: using associated brands as ingredients (Dell & Intel) that are supplied by another firm. Findings: * For Slot-filler expansions, a cobranded ingredient facilitates initial expansion acceptance, but a self-branded ingredient leads to more favorable subsequent category extension evaluations. Subjects appeared not to credit the host brand for the cobrand association in evaluating subsequent extensions, and if anything, they held it against the host brand. * For new attribute expansions, a co-branded ingredient leads to more favorable evaluations of both the initial expansion and the subsequent category extension. Because a self-branded ingredient did not help ‘broaden’ the equity of the host brand, and because the host brand may have lacked credibility, an extension involving a self-branded ingredient was less favorably evaluated. * Should ingredients be branded? Yes, it improves the competitiveness of the host brand and it’s a signal of quality when combining high quality brands. Implications: * Besides helping improve the competitiveness of the host brand, the new attribute can, in some cases, expand the usage of the host brand. * Co-branding might enhance short-term equity of a host and its value, even under low fit. However, in the long-term co-branding will require more fit to the category. After all, they’re borrowing and not generating equity themselves. * Evaluations of slot-filler extensions suffer after the cobrand that was originally used in the expansion is dropped from the extension. Article 3: Gussoni, Manuela and Andrea Mangani (2012) â€Å"Corporate branding strategies in mergers and acquisitions,† Journal of Brand Management, I 350-213IX, 1-16 Constructs: * Corporate name is a strategic marketing asset and carries the corporation’s reputation. * Mergers & Acquisitions: can be classified as: * Conservative: the new entity adopts the acquirer’s or the target’s corporate name. * Innovative: the new entity uses a mixed or new name. * Horizontal: if the combining entities are active in the same  industry and produce similar goods & services. * Vertical: if the combining entities are active in the same industry but at separate production stages (buying buyers or suppliers). * Divisional acquisition: acquiring /merging only some divisions of companies. * Diversification: if the combining entities are active in separate industries * Financial investments: if a financial investor, typically a private equity investment firm, acquires a manufacturing or service company. Findings: * Divisional acquisition, vertical integrations, diversifications and the sectors involved do not affect the probability of the strategy being innovative. * Inventing a new name for a target is unusual. * Innovative brand strategies are more probably in the case of mergers (as opposed to acquisitions), horizontal M&As and financial investments. More specifically, a mixed name is the preferred option since value and reputation of both names will be involved. * When doing a financial investment, the acquirer doesn’t transfer it’s name, but chooses between keeping the acquired name or changing it in case of bad reputation. * Horizontal M&As tend to extend the name of the acquirer to the target. Implications: * Management and chanting of brands and corporate names may have a profound impact within organizations. Therefore we recommend carefully interpreting our and other studies regarding naming strategies. * Marketing during a M&A process is often underestimated. Article 4: Ilicic, Jasmina and Cynthia M. Webster (2012) â€Å"Celebrity co-branding partners as irrelevant brand information in advertisements,† Journal of Business Research Constructs: * Celebrities are identified as co-branding partners, where two brands (one being the celebrity) are paired with one another in a marketing context such as an advertisement. * Their should be a match between the  celebrity and brand image to achieve positive effects on consumer attitudes. * A celebrity not only provides consumers with relevant brand information when they convey characteristics pertinent to the brand but also when they mention information relevant to the endorsed brand. * Irrelevant information provided by a celebrity endorser also aids in making a judgment about whether the brand is able to deliver the benefit according to the consumer. This holds regardless of whether relevant brand information is also present. * Dilution effect in marketing: Dilution of consumers’ beliefs might occur when a celebrity provides both irrelevant and relevant brand information. This effect is present regardless of whether consumers perceive the celebrity to match or mismatch th e brand. Findings: * When a celebrity co-branding partner does not provide information about the partner brand nor brand benefits but plays a peripheral role, consumer judgments in the ability of the partner brand to deliver benefits, their purchase intent and their match-up perceptions become less positive. * Consumer brand benefit beliefs and purchase intentions show evidence of a dilution effect only when consumers perceive a mismatch between the celebrity and brand and when presented with irrelevant information supplied by a celebrity in addition to relevant brand information. When purely relevant information is presented, dilution does not occur. * Dilution occurs on perceived brand benefits, purchase intentions and match-up perception between the celebrity and the brand. Implications: * Ensure that a celebrity co-partner does not provide irrelevant brand information within advertisements to avoid brand benefit belief, purchase intent and match-up dilution. * Advertisements should feature an irrelevant and incongruent celebrity in combination with relevant brand information.

Code of Ethics for Government Officials and Employees

REPUBLIC ACT NO. 6713 Code of Ethics for Government Officials and Employees AN ACT establishing a Code of Conduct and Ethical Standards for public officials and employees, to uphold the time-honored principle of public office being a public trust, granting incentives and rewards for exemplary service, enumerating prohibited acts and transactions and providing penalties for violations thereof and for other purposes Sec. 1. Title. This Act shall be known as the â€Å"Code of Conduct and Ethical Standards for Public Officials and Employees.† Sec. 2. Declaration of Policies. It is the policy of the State to promote a high standard of ethics in public service. Public officials and employees shall at all times be accountable to the people and†¦show more content†¦Ã¢â‚¬ ¢ (b) Professionalism - Public officials and employees shall perform and discharge their duties with the highest degree of excellence, professionalism, intelligence and skill. They shall enter public service with utmost devotion and dedication to duty. They shall endeavor to discourage wrong perceptions of their roles as dispensers or peddlers of undue patronage. †¢ (c) Justness and sincerity - Public officials and employees shall remain true to the people at all times. They must act with justness and sincerity and shall not discriminate against anyone, especially the poor and the underprivileged. They shall at all times respect the rights of others, and shall refrain from doing acts contrary to law, good morals, good customs, public policy, public order, public safety and public interest. They shall not dispense or extend undue favors on account of their office to their relatives whether by consaguinity or affinity except with respect to appointments of such relatives to positions considered strictly confidential or as members of their personal staff whose terms are coterminous with theirs. †¢ (d) ) Political neutrality - Public officials and employees shall provide service to everyone without unfair discrimination and regardless of party affiliation or preference. †¢ (e) Responsiveness to the public - Public officialsShow MoreRelatedEthics and Accountability in the Philippine Public Service: Role of Citizens, Public Officials, Private Sector and Civil Society1180 Words   |  5 Pagesâ€Å"Ethics and Accountability in the Philippine Public Service: Role of Citizens, Public Officials, Private Sector and Civil Society In my previous paper, I mentioned that values are as important in our government system as the other functions and political processes are. 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