|
Business School Assignment Module Code Number: BSB10186-3 Module Title: International Marketing Teaching Block: 2, 2008/2009 Assessment Type: Assignment Assessment Title: Wedgwood Weighting: 100% Moderated by: Internal Scrutiny Panel External Date of issue: February 2009 Submission Date, Time, Place & Arrangements: Submission Date: 10th April 2009 Assignments must be submitted by the due date. The only circumstance in which assignments can be submitted late is if an extenuating circumstances form is submitted at the same time. In these circumstances work may be submitted up to 2 weeks late only. If the extenuating circumstances are upheld, the assignment will be graded, otherwise a ‘0’ will be awarded. NB. None of the above penalties will be used to change a student mark which is above the pass mark, to one that is below the pass mark. Therefore the maximum penalty for exceeding the word limit will be a reduction to a pass grade. Assignment Wedgwood Sadly, in January 2009, the impact of the global credit crunch on ‘nice to have’ rather than ‘need to have’ luxury branded tableware, together with the long term decline factors discussed below, forced Waterford Wedgwood into administration. Nevertheless, business continues and there is a hope and expectation that a buyer will be found who can restore the fortunes of these iconic brands.#p#分页标题#e# Wedgwood is striving to succeed at a most complex set of roles. It is a UK based manufacturer, a retailer and a tourist destination. It also brands products sourced elsewhere and markets internationally in a culture bound industry. Finally, through its collectors’ clubs, it is in direct marketing as well as selling through a variety of owned and independent wholesalers and retailers. 700 million homes use the brand worldwide and 360 retail shops stock it. There are15 million consumer purchases each year, 1 million visitors to the website and ½ million to the Visitor Centre in Barlaston near Stoke-on-Trent. The company which was founded by Josiah Wedgwood in 1759 is a British cultural icon. In 2006 Wedgwood was the number 1 fine china brand in the UK and has consolidated its position as No. 2 in the US market. Wedgwood also maintains its No. 1 position in Japan, Ireland and Australia. Secondly, research had shown that, in terms of several dimensions, the Wedgwood brand was perceived differently in different countries and different regions. For example, Wedgwood was seen as more traditional in the USA than in Europe and more luxurious in Japan than in Europe. There were other differences. Wedgwood was seen in Japan and the US as expensive but value for money, classic/timeless, British, stylish, luxurious, and elegant. However, whilst perceived as exclusive in the US, it was perceived to be too available to be exclusive in Japan, where it was also seen as not being sufficiently adventurous and contemporary to have the cachet of some lifestyle brands. In the US, Wedgwood was perceived to be too formal and not sufficiently contemporary for audiences such as Generation X whereas it was very desirable to other segments such as empty nesters. In Japan, Wedgwood was considered a safe choice for all segments which would reflect well on giver and receiver. In Japan new general consumer segments were seen to be arising out of changed economic and social circumstances. Working single women, aged 25-34, who still live with their parents, now number about 10 million. On average, they are estimated to spend about £2,500 a year on fashion goods. Viewed negatively by many, they are referred to ‘parasite singles’. Another growing segment is formed by couples with double incomes and no children. The silver (older age groups) market is also increasing in size. Fourthly, Wedgwood (in particular) is continuing to adapt and refine what its brand stands for and how this should relate to the company’s mission and vision. One aspect of this relates to the brand’s rich English heritage but with the desire to be seen as contemporary rather than old fashioned. There was a general feeling within much of the company that Wedgwood should seek to become a luxury lifestyle brand, following in the mould of Burberry, Gucci, Prada and Tiffany. This would allow it to expand beyond its product focus and craftsmanship base into a much wider range of lifestyle categories. An important role in implementing this strategy would be played by Wedgwood iconography. For example, a tiny Jasper ware motif already appears in the centre of Wedgwood cufflinks. However, there were some fears that extending the brand too far would cause a loss of credibility and a shift towards more accessibility but less premium status. Jasper Conran has designed a range of pure white china, complemented by a number of shimmering pieces in Wedgwood Jasper ware to present a strong contemporary look in tune with modern living. The elegantly sculptured pieces in the collection may look like works of art but are ideal for use throughout the day. The range has all the simplicity and elegance of Jasper Conran’s catwalk collections. A second initiative is explained by Tony O’Reilly (the son of Sir Anthony O’Reilly, the Heinz magnate and chairman of Waterford Wedgwood). ‘Since the 18th century Wedgwood has been at the forefront of innovation and design, but today it is primarily seen as a plate manufacturer. We have become a sleeping giant and need to reacquaint ourselves with our customers. This means providing them with a total retail experience. We already do this in Japan, where our stores are at the cutting edge of retail design, but in this country our flagship store was an abomination. The Regent Street flagship store used to display every piece of every range regardless of their often clashing styles. The result was a chaos in which Peter Rabbit bowls collided with the latest Jasper Conran tableware, while brides-to-be tried to pick out their wedding china. The new store will be a destination and an experience’#p#分页标题#e# In the important luxury brand market of Japan, there has also been dramatic social and economic change. The extended Japanese recession has seen a significant decline in the ceramic tableware market. Despite being awash with cash, Japanese consumers have saved rather than spent on the luxuries they prize – including Western luxury brands. The end of guaranteed lifetime employment, worries over pensions and the loss of confidence in Government and financial institutions have all contributed. Demographic changes such as fewer children and the most rapidly ageing population of all the industrialised countries have occurred. Socially, Japan is no longer such a homogeneous nation. Far more emphasis is today put on individuality and “customisation” than before, with value-for-money playing an increasingly important role in consumers’ decisions. This has been reflected in changes in marketing channels with, for example, supermarkets playing a much larger role (although more at the expense of small shops rather than the position of the world class department stores). In the middle 1990’s Wedgwood was forced to significantly reduce prices as Japanese consumers, accustomed to travelling the world, saw price levels which were much lower in other countries. They responded by buying through the parallel market either in the form of personal imports or through unofficial traders. The main causes of the price differentials were the markups added by lengthy vertical channels combined with the depreciation of the yen. The price reductions harmed profit margins and also affected brand perceptions. Other cultural changes which impacted directly on Wedgwood included a decline in the traditional Japanese customs of formal and corporate gift giving. In personal gifting, a china cup and saucer is still the gift and many households have impressive collections. However, younger gift givers are beginning to depart from this and buy with the recipient’s specific needs in mind. Tea remains a central part of Japanese life with Japanese tea ceremonies celebrating special family occasions. English tea and scones are often served in English bone china on other social occasions. “We have a number of approaches in terms of how we present Wedgwood as a superb lifestyle brand,” says Hanspeter Kappeler, President of Waterford Wedgwood Japan. “The ultimate validation of our status as a luxury brand here is demonstrating that it is a luxury for department stores to have us present. For fine imported brands in this country, department stores are the place to be.” To showcase Wedgwood’s casual products distinctly from its more formal luxury lines, “My Life” boutiques were established in a number of department stores in a separate area from the main Wedgwood shops. These featured Wedgwood earthenware and many non-ceramic products. Wedgwood Fine Living mini-boutiques display the growing range of Wedgwood linens for table, bed and bath and are found on yet another floor in department stores Traditionally, Japanese department stores have food halls in their basement areas, and this is where many Wedgwood Fine Taste corners are to be found featuring Wedgwood’s line of teas and English food products, which have grown increasingly popular. Wedgwood has also launched five Wedgwood tea rooms in department stores, featuring both Wedgwood products and light English-style meals that reflect the company’s roots. Barlaston Green Salad, for example, is a popular offering. Tasks: Please note you may choose EITHER Task 1 OR Task 2 1. Recommend and justify a ‘whole channel’ market entry mode strategy for Wedgwood into Mexico OR Russia (100% of marks) 2. Recommend whether Wedgwood should cease UK production of its brand and reduce costs by manufacturing in, or outsourcing to, a lower cost country. Your recommendation must be based on the likely impact on Wedgwood’s brand image in general and in some key international markets. Assessment criteria for Task 1 In order to achieve a pass, you must: In order to achieve a merit, you must fulfil the above, plus: In order to achieve a distinction, you must fulfil the above, plus one or more of the following: Assessment criteria for Task 2 In order to achieve a pass, you must: In order to achieve a merit, you must fulfil the above, plus: In order to achieve a distinction, you must fulfil the above, plus one or more of the following:
Constraints On Your Use Of Appendices: • Appendices do not count towards your word limit • Select and summarise the appropriate sections & information; • Where applicable, to provide the relevant content in the concise form of tables, graphs, charts or lists • Ensure that all material used is properly referenced at all times (see full guidelines below).
This requirement applies if you use any sources of evidence, including: You should make use of the library and the Internet for accessing suitable sources of data, and the University has databases such as: ADDITIONAL INFORMATION TO TAKE CAREFUL NOTE OF: Plagiarism Contrary to popular student belief getting caught and being punished for committing plagiarism is not a rare occurrence. The Marketing Team typically uncovers and reports for disciplinary action between 6 and 12 students each year. We strongly recommend that you read the full document at the above address. Summarised below are some of the key points. You will have committed plagiarism and may be caught, reported and punished (as described below) if you: The University regards this form of cheating as a serious offence. |
 |
|||
| 网站地图 |
