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Table of contents Introduction Peg no- 5-7 Questions 2 Peg no- 12-15 Question 4 Peg no- 18 References Introduction of Ululation Values and Ethics word count- 3176 Peg no- 3-4 Question 1 Peg no- 8-11 Question 3 Peg no- 16-17 Conclusion Peg no -19 We at Ululation aim at protecting the eyes and enhancing the faces of men and women all over the world, by manufacturing and selling ophthalmic aware and sun wear characterized by their high technical and stylistic quality, in order to maximize our customers’ wellbeing and satisfaction.
Ululation group is the world’s largest aware company involving the designing, manufacturing, wholesale and retailing of high end prescription eyeglasses and high quality sunglasses. Ululation founded in 1961 by legendary entrepreneur MR.. Leonardo Del Vehicle in Grade north of Venice, Ululation group now is the public listed company in NEW YORK and Milan stock exchange. Ululation group has about 6200 optical eyeglasses and sunglasses stores in North America, Asia Pacific, China, UK and South Africa.
Ululation group’s brand coverage includes Souses brands and 0 licensed brands, which are all known to customers like Oakley, Ray-Ban, Barberry, Pravda and many others. Consecutively adhering to the quality and service excellence, Ululation group by today focus the design and manufacturing in its 6 Italian plants, one California factory and two china-based factories for premium and luxury aware. Ululation group invests strongly in the research and development to change people’s view of eyeglasses from stigma to a symbol of status and distinctive sign.
With the support of excellent quality and design and being listed in two stock exchanges, Ululation group executed a series of acquisitions in the recent two decades. In 1990 Ululation group acquired Italian brand VOGUE, in 1995 Peers and US brand lens Grafters were bought. Furthermore, with Ray BAN in 1999, sunglass hut in 2001, pearl vision in 2004, surf eyes in 2006 and the most recent purchase of Oakley in 2007, Ululation group becomes the worlds unbeatable no. 1 giant of aware.
Today Ululation group has penetrated its retail business in 38 Countries and whole sale business in 130 Countries. Ululation’s ultimate vision is to serve the men and omen in the world in the best possible way, and to finally achieve the new way of seeing oneself and new well being for everyone. I-Today Ululation’s worldwide strategy is mainly global with a high level of standardization and low adaptation. Do you see any room for adaptation strategies in price, promotion, distribution and products?
Adaptation strategy Many writers have argued for a standardized, instead of a differentiated, approach to international markets. Accordingly a standardized approach is desirable because sales may be higher owing to a consistent product image across different geographic arrests. Furthermore, costs can be reduced by amalgamating production activities moving to a low-cost location without sacrificing quality and obtaining the economies associated with formulating and implementing a single standardized marketing plan.
According to Ululation they are absolutely working according to this approach of standardization because they are moving towards low cost location but instead of compromising on the quality, they are providing the best quality products all around the world even it is low-cost or even it is high cost. So they are not compromising on he quality of product so there is a lot of room for them in the market if the implement on few things which I discussed below. Yes I do, and they do have a place in the market if they revisit their adaptation strategies regarding the price, product, place and promotion.
They can get more market share easily if the simply made few changes in these marketing mix (up’s) because Ululation is the leading brand all over the world in the eyeglasses. Marketing mix up’s Product Ululation is providing the expensive glasses to their customers if they simply Just augment their product then they would be able to get more market share because people wants to wear new designs in the glasses they should design their product according to the customers requirement. Moreover they should consider on the value of their product its value shouldn’t be more than the product worth or value.
Ululation should provide more warranty period of their product so customers can get more confidence on Ululation’s product and they will buy it with the free minds. Price Price is the one of the major factor that most of the customers leave the product. As err Ululation brands they made glasses for the higher classes but they should also make glasses for the middle class people for that they should re-consider their prices so that people can buy their products easily. Ululation should set the price of their product according to the place.
So they should use skimming price strategy in starting to tell people that it’s a brand let the prices high and then after few time low the prices. Place They should consider the place before opening new outlet, that is this market strong or not, what customers like in this place after analyzing all these things they should o on for their new outlet. Place is really important for the brand so they shouldn’t compromise on the location or place. Moreover they should also emphasize on direct sales like they are doing it already in US and other markets, so in new place this would help them to consider the environment and the customer dealing.
Promotion Ululation is the brand which is world re-known brand and people know about it, and if Ululation wants to capture more market share all over the world then they should give special offers on their product like buy-one get one free or 50% discounts. Like his they can easily made more room for them in the market, moreover they should not compromise on the advertising or promotion of their products they should advertise their product so more customers can know about their deals and offers which would attract more customers towards their brand or products. -Today Ululation’s is a global firm with the global brands but this competitive position has been obtained thanks to step by step strategy that started with the direct penetration of the US market and then moved on to other markets. Why do you think Ululation chose this gradual approach in terms of market selection? Discuss the related benefits land disadvantages of the gradual internationalization approach for Ululation. Why in your view, has the US been selected as the first foreign market in which to invest heavily?
Five porter forces analysis Bargaining power of customers Ululation products prices are really higher and their products are really expensive because they made their product as a brand. So if they are in a normal market than most of the customers would ask them for the discount and they will bargain to their maximum extent. So it’s better for Ululation to provide the best offers to their customers so that they would not bargain with them regarding their product and its prices.
Bargaining power of suppliers Ululation should sign agreement with the different suppliers so that no one can blackmail them on anything, if in any case some supplier ask them to increase the prices of the raw material than that would be difficult for them to maintain its production and it will also affect the market requirement. So they should not depend on the single supplier. They should deal with the other suppliers as well so that their production would not be harm in any situation. Threats of new entrants
Ululation is world re-known brand right now so the threat of new entrants is not that much important for them as they are the leading brand in the market. But if they don’t want to face the competitor then they should launch new product in the market which would attract more customers towards their products and the threat of new entrant would be low for them. Substitute products Ululation should think about the substitute products for their brand, like they should introduce new products to get more market share all around the world for e. G. They should launch contact lenses etc Competitive rivalry in the industry
Right now there is no competitive rivalry in the market for Ululation because Ululation owns each an every big brand by itself like Ray-ban, vogue and many others. So that is why there is no competitive rivalry for Ululation Now let’s analyze the advantages and disadvantages, if they implement on the porters five forces than how it will affect them in a positive or in a negative way Advantages Disadvantages Help them to capture more market share Won’t be able to increase their market share Ululation will be able to launch a new product Won’t be able to launch a new product Help to compete their competitors
Affect their production To be able to build business relation with more other suppliers Affect the market share Able to increase its price and demand of the product They won’t be able to increase their business and sales Why they have chosen US market The reason behind choosing US market is because US itself is very huge market, in US customers are very potential they can buy the product at any price that is the biggest reason they have chosen US market.
Because in US, fashion is very much ahead from all over the world because of Hollywood every big star has already wear the Ululation lasses which has given them a great popularity all over the world. Moreover in US they can easily get the any price of their product because they produce the products in china and sells in US so that is the reason.
Now let’s discuss some facts and figures as provided by the case study Total sales of Ululation = 6 805 977 000 $ Net sales of Ululation by geographical area US ASIA PACIFIC REST OF THE WORLD 27% So we can see that US is the more than half of the world market for Ululation, that is the reason that they have chosen US market, because of the potential customers and he high population. 3-The recent (2008) financial crisis that hit the world economy has changed the global competitive landscape, especially in the luxury sector.
With many luxury brands being severely hit by economic down turn. In these new circumstances many luxury brands are revising their strategies. What do you think Ululation should do to maintain its competitive edge? The current economic downturn and wild swings in stock market in much of Europe and North America has not spared the fashion industry. Previous buyers of $1,000 pairs of shoes and $5,000 cocktail dresses are effected along with the rest of the consumer demographics, leaving the industry in a state of despair.
Though the demand for couture may always exist, the demand for its cost certainly does not The economic situation on the other hand continues to be weak. High unemployment in US and financial crisis in many countries of Europe suggest that we may have to wait a bit longer before returning to high-spending days of the past. It was well after pm on Monday September 15 – 2008 this year when Gordon Brown made an appearance at the Downing Street reception being hosted by his wife, Sarah, to mark London Fashion Week.
His tardiness surprised no one; after all, Lehman Brothers had filed for bankruptcy that morning. While the fashion editors, retailers and models in the room had gone from a marquee by the Serpentine and EULA Barley’s avian- grade party dresses to Paul Smith’s catwalk show at Clearing’s on their way to Downing Street, Brown had spent the day dealing with an unfolding financial crisis. He had made his way home from the Canary Wharf offices of Citreous, where he had attempted to broker a deal with Sir Victor Blank, chairman of Lloyd TTS, to take over HOBOS.
If Brown looked a little tired and distracted as he made a swift circuit of the cashmere-clad, champagne-fuelled crowd and made a quiet exit, it was understandable. During this autumn’s catwalk show season, not even the most determined fashions could live in a bubble. There have been other fashion weeks over which the shadow of bad times has fallen, but this time show season collided head-on with financial meltdown. Crisis segued into catastrophe.
The clothes on the catwalk had been conceived, in large part, during the early summer, when the talk was of whether we were headed for recession or mere downturn. But now, in early autumn, the world’s fashion buyers had the unenviable task of committing to check book their Judgment of what women will want to spend their money on next spring, at a time when a global run on the banks was not inconceivable, and recession looked certain.
But the relationship between fashion and the economy is not a simple one. A change in economic fortunes can exert a directional pull, but in opposite directions. As Hooper says, anything that affects us on an emotional level – as the current level of economic uncertainty does – matters to retailers, because “you want o feel good about a purchase – after all, that’s why you’re doing it, really”.
Some retailers believe their customers are drawn to an aesthetic of restraint and comfort during lean times: Hooper identifies in the current vogue for round-shouldered shapes a desire for “cocooning, which is the feeling of wrapping up, of hunkering down. It’s a basic human instinct. How Ululation can maintain its competitive edge in the market Ululation can easily maintain its competitive edge but first we have to do SOOT analysts of ULULATION Strengths Their products Brand reputation Services Profitability Financial resources Market position
Advocates (customers) Weaknesses Lack of new products Staff Sales channels Limited customers Opportunities New complementary market Competition weaknesses Launch of New products Threats Economy New entrants New technology Increased competition Falling sales Decreasing profits Few more things, if Ululation do implement on these things then they can be able to capture more market share as well as also can be able to maintain their competitive edge.
Price They should consider their prices again, and give special promotion and discounts to the customers so that more customers can be able to buy their products which would erectly increase their sales and profits. Product Ululation should invest some money in their RAND department so that they can be able to introduce new products in the market. This would also attract more customers towards their brand and product.
Cost manufacture They should try to less the cost of manufacturing so that they can be able to maintain their competitive edge by giving special discounts on their products If they want to give special price and discounts on their products to the customers then that can only be possible if they less the manufacturing cost of their product ND that can only be possible if they plant their industry in Asian countries. Because in Asian countries their manufacturing cost will be very low so they can easily provide the best price and discounts on their products.
If they implement on these few things then they can be able to maintain their competitive edge in the market, and also be able to increase its market share as well as increase in profits. 4-Ululation pursued an aggressive distribution strategy based on acquisitions in its main target markets (US and CHINA). This strategy allowed Ululation to gain direct intro of the market outlets but also generated additional risks. Discuss the main risks related to this distribution strategy.
Would a strategy based on the development of a number of franchising chains not have been more efficient allowing a comparable level of brand recognition and control over the retail stores but using a lower level of capital and allowing faster coverage of the different markets? What alternative strategies could have been used in order to balance the company objective of brand recognition/control and lower risk (and in which market)? Discuss the main risks related to this distribution
Risks I-The major risk of this strategy is that the Ululation company is under a lot of economies of different countries by implementing on this direct market control, So if any one of economy will fall down it will directly affect the company sales and its revenues. 2- One of the important risk is also that if political condition of any country goes bad then this would also affect the company directly because some time while protesting so many protestors fire the shops and damage them so that could be Ululation shop so this is also a very big risk which Ululation is taking while implementing on this strategy. One more risk is very important and can also effect the Ululation company directly that is the availability of resources if in any condition their suppliers in the specific country will stop supplying them raw material because of the unavailability of the natural resources this would also effect the sales of the company directly. 4- One more risk is also very important and that is to ensure the quality product for the customers under the supervision of the heads, if they won’t be able to provide the quality product as they are known for than this would directly affect the company repute in the market.
Now let’s discuss if they give their franchises than what would be benefit for the company and what would be the disadvantages if they don’t give franchise If they give franchise (advantages) If they don’t give franchise (disadvantages) Low risk High risk Low investment High investment Will get the securities Company will spend but didn’t be able to get anything in term of security Will be able to provide quality products Would be difficult to insure the quality of the product Can be able to enhance their business easily all around the world or in missing market Will not be able to increase their business easily a
Will take less time to get into the other markets or countries Will take more time to get into the other markets The alternative strategies which would can be used by the Ululation to balance the company objectives, brand recognition and to control the risk and in which new market. Now I would suggest Ululation to do a Joint-venture or partnership in a new market, because it would low the risk factor for the company and investment will also be very low.
Moreover Ululation can be able to balance the company objective and brand recognition all around the world so they should go for Joint venture in a new racket of Islamic republic state of Pakistan and city should be Lahore. In Islamic republic state of Pakistan there are many potential customers, who can easily buy the quality products so Islamic republic state of Pakistan would be very beneficiary market for the Ululation. Because in Pakistan there are already many big brands like e. G. Marks & Spencer, Ben Sherman, next and etc. So Pakistan is a very potential market for Ululation.
Conclusion After analyzing all the adaptation strategies they do have a room in the market if they simply implement on these things which we discuss above. They can easily capture more market share all over the world which would help them to increase their sales and as we have also analyze the porter five forces if Ululation would implement on these suggested things than they can be able to get more market share all around the world . Moreover as we discussed above they can be able to maintain there competitive edge by implementing on the few things like cost manufacturing, prices and many other things regarding SOOT.
They should also do Joint venture while entering in the en market because local people of the country know the real situation f the country and the market. So they should go for Joint venture while entering in PAKISTAN market which would help them to low the risk factor as well as the low investment. Referencing Gharry, P. And Cater, P. (2010) International Marketing. 3rd deed. London: The McGraw-Hill Companies, p. 594-599. Bradley Fran (2005). International marketing strategy . 5th deed. UK: Pearson education limited, p. 5-6. Augural, Main. Current Economic Crisis and Emerging Fashion Designers(Lenten).
Version 5. Knoll. 2011 Seep 15. Available from: http://knoll. Google. Com/k/main-augural/current-economic-crisis- ND-emerging/35a6srh9kf110/2. Last accessed 16-2-2012. Jess Carter-Morley. (2008). Lean times and hemlines. Available: http://www. Guardian. Co. UK/lifestyle/2008/ novo/01/financial-crisis-fashion. Last accessed 16-2-2012. Http://www. Ululation. Com/en/ company/value_ethics/. Reflective essay Thinking got advance after taking international marketing As I am going to discuss about my ideas and learning which I have learnt from the international marketing module.
As I have learnt a lot of things from my lecturer which he taught me in the lectures and seminars, as my family background is a cuisines family and we have our own industry in which we are exporting surgical instruments. Now when I think to do my work as per this teachings than I feel more confident and intellectual person because international marketing is the module in which I have learnt how to market your product, how to introduce your product and may other things.
These theories and practical practices in seminar will help me in my future while exporting our goods to the other people and customers. International marketing is the module which seems very important to me because it changes my thinking and shows me a new way to do business. Now whenever I take part in meetings then people wants to listen me my ideas because international marketing enhance my whole thinking.
After studying international marketing theories and processes to launch the new product, these things help me while I am thinking about augmentation of product or about diversification. It really increases my exposure and vision of thinking. Now I think one step ahead from my team members because of the knowledge which I have got from international marketing. I have gained a lot of confidence after taking international marketing because it helps e while taking decisions and gives a lot of support to my decisions as well.
About my group work experience That was really nice to work in a group, my experience was working in group was awesome because there were so many things which I have learnt from my friends while working together. When you are in group you can easily do more work and that would also helps you to increase your knowledge share your ideas and experiences with each other. So working in a group was amazing in seminar as well as in lectures. If sometime I was unable to understand something, my group members were always