MKT 3300: International Marketing Winter 2017 Drake 108, 1100-1245 T, TH

Instructor: Fang Wan, Ph.D (万方) Professor of Marketing Asper School of Business, University of Manitoba, Canada Email: fang.wan@umanitoba.ca Wechat: fangwan_aydan Cell: 204-2906584 Office Hour: Drake 494 right after class

COURSE OVERVIEW

Our world has been revolutionized in the past decade. While “how are you” was once the universal greeting, today it’s “where are you?” Social media such as Facebook, Twitters and traditional media can make an event, taken at one geographical location, a global event, attracting world-wide audience. In this global context, it seems impossible to run a company, manage a product line, or deal with business partners without addressing cross-cultural issues. More than ever, the cultural, political and economic differences among the world’s consumers and markets have become the most important business intelligence of a Multinational Corporation (MNCs) if run successfully. At the same time, MNCs constantly battle the paradoxes of standardization versus localization, and universalism versus particularism. Unfortunately, unlike Mathematics, or cooking recipes, the formula of managing a successful international business seems to be an illusion. When a company decides to conduct business or deliver their products across border, the cross-cultural challenges they face and solutions or strategies they take are too complex to be condensed into a few guidelines, or a tool box of rules, constructs, or strategies. Instead, the only thing to learn about international marketing is to immerse yourself into stories of success and stories of failure. Via these rich tales, we can

derive our understanding what international marketing means, what core arguments, paradigms, frames are when it comes to international marketing. In this regard, I am looking forward to teaching students who are sensitive to cross-cultural differences, who envision their future is intricately connected to worlds beyond Winnipeg, beyond Manitoba, and who have passions for a career in international marketing. If you are such a person, I welcome you on board. Let’s start our journey.

COURSE OBJECTIVES I would like to equip my students with the following capabilities:

• Understanding key concepts and theories in global marketing such as mode of entry, expansion strategy, pricing, distribution, brand

management and corporate responsibility. • Understanding processes of conducting business intelligence research for decisions in international context such as environment

analysis (political, cultural and competitive environment), internal analysis (channel members and partners) and external analysis (consumer characteristics, product development, brand execution).

• In-depth understanding of the processes, issues MNCs face in their global decisions (via cases) • Being able to conduct research and develop plans to create, leverage, maintain, and/or revitalize a brand or a product in a global

context. COURSE MATERIALS

• Chattopadhyay and Batra (2012), The New Emergent Market Multinationals. McGraw Hill: New York (book store) • https://www.amazon.ca/gp/aw/d/B0086I27VI/ref=mp_s_a_1_1?ie=UTF8&qid=1468443371&sr=8-

1&pi=AC_SX236_SY340_QL65&keywords=Amitava+Chattopadhyay

• Huang, Yasheng (2008), Capitalism with Chinese Characteristics: Entrepreneurship and the State. (book store) • https://www.amazon.ca/gp/aw/d/B00NYIURN0/ref=mp_s_a_1_13?ie=UTF8&qid=1468443269&sr=8-

13&pi=AC_SX236_SY340_QL65&keywords=Ronald+coase

• Keegan, Warren and MarkGreen, Global Marketing, Chapter 5 Regulatory and Legal Environments and Chapter 8 Importing, Exporting and Sourcing. E-reserve. UM Learn. (Free)

• Wimmer (2011), Motoring the Future: Vw and Toyota vying for the pole position. (book store)

https://www.amazon.ca/gp/aw/d/0230299555/ref=mp_s_a_1_1?ie=UTF8&qid=1468444488&sr=8-1&pi=SY200_QL40&keywords=toyota+international+strategy&dpPl=1&dpID=41w%2BAU7wtCL&ref=plSrch

• Case Package: will be available from online publisher. Course pack information will be released in class. COURSE REQUIREMENTS

The course is composed of class participation, case presentation, group project and a final exam.

Class Part i c ipat ion (10%): Class preparation and discussion are essential to a successful learning experience. The student is expected to read book chapters and cases thoroughly before class and substantially contribute to discussion in class. At the beginning of each class, specific questions will be distributed and assigned to students formed in groups. Students will be given about 10 minutes to discuss these questions in groups. This will give students an opportunity to catch up with the main topic of each class for those who do not read course materials. Remember, you are expected to participate in class discussion actively. Both the quality and frequency of class discussion will substantially affect your final participation grade. In addition, you are also encouraged to use Angel and post your opinions, insights, suggestions or discussions on topics either discussed or missed in class. The composition of your final participation grade is:

• class attendance (5pts) • class discussion (5pts)

Case Presentat ion (15%)

At the beginning of each class, a group will present an assigned case in 10 minutes. In the presentation, students should AVOID simply repeating the case facts. Instead, they are expected to focus on issues, problems, opportunities, strategies, and potential solutions buried under the facts and data presented in the case.

You will win a lot of credits by going beyond the case such as 1) updating how the company is doing now to flesh out the strategies they take posterior to the date when the case was written; 2) the relevance of the case to your reality, or the business reality in Canada, in Winnipeg, 3) linking the case to other cases, or constructs.

Final Group Projec t (30%):

Using the knowledge acquired from this class to solve marketing or conduct relevant research in a cross-cultural context is important. Therefore, each group project should be dealing with a real-world business issue. I will provide a guideline for final group project. You will be given time to search for a real client from local business community. If you need help, let me know. This field project tests your commitment to a chosen project and your devotion to your clients. I will allocate time for you to go to the field, meet up with clients, conduct marketing research, conduct some interviews, or meet up with your group. Progress reports are expected. A group leader will be chosen to monitor attendance and commitment of each group member regarding his/her assigned task. The final deliverable has to be formal. You need to be creative and resourceful, just like any job you might take after you graduate from school. For example, you might have to ask your friends who are knowledgeable in certain domains to help out in order to successfully complete the project. Two copies of the final projects are required, with one of them going to the client. Final project guidelines will be released in the middle of the course.

Exam (20%) In addition to class participation, the final exam depends on individual efforts. However, an active involvement in group projects and

discussion will for sure work to your benefit. A general review of course materials will be conducted in class respectively for the final exam. A general strategy to do well in these exams is to pay attention to the linkage BETWEEN the concepts/theories in the textbook/articles and the facts/data in the cases; and to draw lessons/conclusions among various issues ACROSS cases. The exams take the form of essay questions.

In-Class SURPRISE Quizzes (25%) There will be eight quizzes in class. These quizzes WILL NOT BE ANNOUNCED ahead of time. The quizzes are related to the class

materials to be covered on that class. Each quiz is worth 5 points and will be composed of up to three short-answer questions. • Class Participation 10% (Individual) • Case Presentation 15% (Group) • Quizzes (8) 25% (Individual) • Final Exam 20% (Individual) • Group project 30% (Group)

Session 1 Session 2 Session 3,4 Session 5,6

TH Jan 19 T, Jan 24 Th, Jan 26 Th, Feb 2 Note:

Reading materials in this table are marked with **

Introduction/Expectation --COURSE OVERVIEW --IMPORTANT: GROUP ASSIGNMENT ---LOTTERY DRAW FOR CASES --Group leader meeting

MNC and Its Structure and Local Strategy **Coursepack Case: Unilever as a Multi-local MNC What is the structure and strategy of Unilever in terms of its global expansion? **Lure of global branding_harvard

Mindset of Global Brands in local realities: Patience (Global Sourcing and pricing) **Keegan Chapter 5 and 8 **Coursepack case: McDonald's Russia: Managing a Crisis Questions: 1. What problems was McDonald facing in Russia 2. Are these problems unique in their local context, o r are they universal regardless of context and locality? -----------------------------

T, Jan 31 Mindset of Global Brands in local realities: Speed **Coursepack Case: Pokemon: Gotta Catch 'Em All Questions: 1. How is the Pokemon brand

crafted in the United States? 2. What is the dilemma that the

management team of Pokemon is facing in regard to refreshing and renewing the brand in U.S.?

Country of Origin as a Key Brand Asset: COO Effects **coursepack case: Stella Artois in UK Questions: --Is Stella Artois’s success in UK due to luck or the crafting of the brand? **coursepack case: Russian Standard Vodka Is Country of Origin a sustainable brand DNA?

T, Feb 7 In Class Discussion of Final Project (1)

Session 7, 8 Session 9, 10 Session 11, 12 Session 13, 14 Session 15, 16

Thu, Feb 9

Trenches of Emergent Market (B to B companies) **Coursepack Case: Debeer Diamond in Asia Tue, Feb 14 **“Dupont in China”

Thu, Feb 16 How do Culture Brands Expand? **Google Googley **Google’s expansion to China (Case)

Tue, Feb 28 Globalization vs. Challenges in Emergent Markets (EMNC) **Articles from Course Pack: 1) Competing with Giants: Survival Strategies for Local Companies in Emerging Markets; 2) Hidden Dragon 3) Coursepack Case: Shanghai Jahwa: Liushen Shower Cream

Thu, Mar 2 Wrapping Up: External Environment **Keengan and Green: Chapter 5, Legal Environ Ment **Huang’s Book: Capitalism with Chinese Characteristics

Tue, Mar 7 Group Discussions with Fang and Team (2)

Thu, March 9 Paths and Challenges of EMNCs (Part 1) **Book New Emergent Market Multinationals (Chapter 1-3) 1. Choosing Consumer Segments

and Expanding Internationally 27

2. Strategic Competency Building 63

3. International Expansion Through Acquisitions 97

Tue, Mar 14

Paths and Challenges of EMNCs (Part 2) 4. Brand-Building Strategies and

Road Map 133 5. Building Brand Awareness on

Limited Budgets 157 Building Perceptions of High Quality, Leadership

Thu, March 16 Global Brands and Importance of Positioning : Learning for EMNC **Book, Wimmer (2011) Motoring the Future: VW and Toyota Vying for Pole Position

Tue, Mar 7 Group Discussions with Fang and Team (3)

Session 17, 18 Session 19 Session 20, 21 Session 22, 23 Session 24, 25

Thu March 23 Strategies of EMNC **course pack --Tata: People’s Car

Tue March 28 --BYD

Thu March 30 International Merger and Acquistion --Hyundai ; --House of Tata—Acquiring a global foot print

Tue April 4

Final Exam Preview

Thu April 6

In-Class Final Exam

Tue, April 11 Final Group Discussions with Fang and Team (4)

Thu, April 13 Final Group Discussions with Fang and Team (5)

Final Project Presentation Tue April 18 Thu April 20 Deliver final report to

brandfangwan@gmail.com Due Date April 21 Midnight Subject: IM winter 2017 final report. Group leader name

Peer Evaluat ions : Very Important ! You will be asked to evaluate both yourself and your group members in terms of the contribution to group endeavors: case presentation and group project. In previous classes, peer evaluation substantially affected a person’s final grade. Some students received very low individual grades even though their group got very high grade for their work. Peer evaluation is a good censoring mechanism to make sure that each group member contributes to the projects substantially. At the same time, you should remember to hand in your peer evaluation sheet in time.

Your final grade of each project is calculated via the following formula:

Individual grade=group grade*(the peer evaluation of your contribution/the highest average evaluation score within each group*40%+ the group leader evaluation of your contribution/the highest group leader evaluation score within each group*60%).

GRADING POLICY (this serves as a guidance):

• 90-100 A+ • 80-89 A • 75-79 B+ • 70-74 B • 65-69 C+ • 60-64 C • 50-59 D • <50 F

Academic Integrity

It is critical to the reputation of the I. H. Asper School of Business and of our degrees that everyone associated with our faculty behaves with the highest academic integrity. As the faculty that helps create business and government leaders, we have a special obligation to ensure that our ethical standards are beyond reproach. Any dishonesty in our academic transactions violates this trust. The University of Manitoba Graduate Calendar addresses the issue of academic dishonesty under the heading “Plagiarism and Cheating.” Specifically, acts of academic dishonesty include, but are not limited to:

• using the exact words of a published or unpublished author without quotation marks and without referencing the source of these words • duplicating a table, graph or diagram, in whole or in part, without referencing the source • paraphrasing the conceptual framework, research design, interpretation, or any other ideas of another person, whether written or verbal (e.g.,

personal communications, ideas from a verbal presentation) without referencing the source • copying the answers of another student in any test, examination, or take-home assignment • providing answers to another student in any test, examination, or take-home assignment • taking any unauthorized materials into an examination or term test (crib notes) • impersonating another student or allowing another person to impersonate oneself for the purpose of submitting academic work or writing any

test or examination • stealing or mutilating library materials • accessing tests prior to the time and date of the sitting • changing name or answer(s) on a test after that test has been graded and returned • submitting the same paper or portions thereof for more than one assignment, without discussions with the instructors involved.

Group Projects and Group Work Many courses in the I. H. Asper School of Business require group projects. Students should be aware that group projects are subject to the same rules regarding academic dishonesty. Because of the unique nature of group projects, all group members should exercise special care to insure that the group project does not violate the policy on Academic Integrity. Should a violation occur, group members are jointly accountable unless the violation can be attributed to a specific individual(s).

Some courses, while not requiring group projects, encourage students to work together in groups (or at least do not prohibit it) before submitting individual assignments. Students are encouraged to discuss this issue as it related to academic integrity with their instructor to avoid violating this policy.

In the I. H. Asper School of Business, all suspected cases of academic dishonesty are passed to the Dean’s office in order to ensure consistency of treatment.

Appendix B: Final Project Outline

Stage 1: Identity a qualified case or company. This company has to be international in scope. That is, either their value chain, or core business or team are situated in an international context, or cross-cultural context. Stage 2: Interview and Internal Assessment There are two potential alternatives. For a company based in Canada, it is relatively speaking easier to either conduct interviews or do site visits to understand the company’s culture, capabilities, resources, mindsets. If it is an international company, media interviews of the company key leaders can be the alternative source of information. Be mindful of the insiders that are in your personal network. In addition, please try to gather information on the company’s short term and long term goals, and how their international capabilities meet up these goals. When you identify issues from your internal analysis, please try to link up to the consequences of these issues. Stage 3: Market research and Analysis Students should look into the external environment in which the company competes. You are encouraged to do some research on the existing conditions of the market from secondary sources such as newspapers, magazines, journals, databases, and other credible sources. However, it is also important to look beyond existing literature and conduct first hand research, such as surveys and in-depth interviews (with competitors or customers). This research will help you to have a grasp on the current market conditions that you need to consider when developing strategies to either maintain competitiveness of the market place or strive for further growth. Stage 4: Strategy and Implementation

The core of this stage is to develop strategies that connect the company’s internal resources to the external environment. (issues, goals, performances with regard to the company’s conditions). When we engage in project discussion and consultation phase, these strategies will arise with my personal coaching and probing with your findings and insight. Implementation plan needs to be specific yet legitimate and credible, which is guided by meaningful research findings and boundaries of company’s conditions. Once you have concluded what your strategy is, you will need to decide how to do it. Be mindful of the difference between strategy and execution. Stage 4: Presentation and Report Specific requirements will be discussed and delivered in class.

Professor Fang Wan is Professor of Marketing, Ross Johnson Research fellow at the Asper School of Business of the University of Manitoba, Canada. Her research interests include Brand Management, Cross-Cultural Consumer Behavior and Media and Advertising Effects. An ethnic Chinese living in Canada, Dr Wan has been tirelessly pursuing an approach to teach, research and consult branding with her integrated system: Brand Triangle, composed of 6 cornerstones: brand soul, internal branding, external branding, brand synchronization, brand adaptation and brand tracking. With Dr Wan’s Brand Symposium, a brand consulting platform she created for Canadian business communities, she and her team have provided brand consultation services to more than 200 companies, ranging from a small family business to industry conglomerates, representing a vast number of industries. The passion of branding and immersion in the brand world make Wan not only a keen observer and researcher of brand activities and strategies, but also equip her with refreshing lenses via which brand teaching and brand consultation are conducted. Her brand management courses and workshops have won raving reviews from participants on both sides of the Pacific Ocean. Actively pursued by professional and business communities as a guest or key note speaker, Dr Wan has been applauded as a powerful speaker who inspires and energizes her audience. Dr Wan is currently completing two books on branding. The first one Brand Triang l e : An Integra t iv e Approach to Brand Management is developed out of her own consulting experiences with branded businesses over the past decade. Her Brand Triangle Framework takes a structural approach to analyze branded business as a system and her diagnostic tool Brand Triangle has guided many firms to audit its internal and external brand systems and allowed them to quickly identify brand issues and seek appropriate brand strategies and solutions.

FACULTY BIOGRAPHY

Fang Wan, Ph.D. Professor of Marketing Ross Johnson Fellow Asper School of Business University of Manitoba Email: fang.wan@ad.umanitoba.ca http://umanitoba.ca/faculties/management/faculty_staff/academic_professors/wanfang.html

Her second book is Brand Storm from China, coauthored with Amitava Chattopadhyay from INSEAD and Dongsheng Zhou from CEIBS, Shanghai. With her team, Dr Wan had spent 20 months doing the field work, analyzing secondary data and interviewing top executives of China’s growing global brands such as Mindray (NYSE: MR, medical instrument,), Levono (Nasdaq: LNVGY.PK, computer electronics), TCL (SZSE 000100, Multimedia), ZTE (SEHK: 0763, provider of telecommunication equipment and network), Baidu (NASDAQ: BIDU, Internet Search Provider), BYD (BYD Co. Ltd, HKG: HK 1211, specializes in IT, automobile and new energy). In this book, they discuss the drivers explaining these firms’ rapid growth and rising status on the global stage. Wild East and Spinning Wheel are the first two chapters depicting the institutional and business environment and mindset of today’s China. Speedy Imitation and Village to City are the last two chapters delineating the core strategies Chinese firms adopt to outperform their MNC peers both in domestic and global markets. Lastly, they will contrast the pathways of brand building of both incumbent North American MNCs and the ones from China. Wan was born and raised in China. She went to Wuhan University at the age of 16. She obtained her BA in English from Wuhuan University, her M.Phil from Chinese University of Hong Kong, and her Ph.D from University of Minnesota. She did her postdoc research fellowship at the Owen Graduate School of Management at Vanderbilt University, before she joined Asper School of Business in 2003. Her cross-cultural journey and experiences become her vital and refreshing source of inspiration for research, consulting and book writing.

1AACSB Assurance of Learning Goals and Objectives. The Asper School of Business is proudly accredited by AACSB. Accreditation requires a process of continuous improvement of the School and our students. Part of “student improvement” is ensuring that students graduate with the knowledge and skills they need to succeed in their careers. To do so, the Asper School has set the learning goals and objectives listed below for the Undergraduate Program. The checked goal(s) and objective(s) will be addressed in this course (MKT 3340) and done so by means of the items listed next to the checkmark.

Goals and Objective in the Undergraduate Program

Goals and Objectives Addressed

in this Course

Course Item(s) Relevant to these Goals and Objectives

1 Quantitative Reasoning A. Determine which quantitative analysis technique is

appropriate for solving a specific problem. * Case analysis

B. Use the appropriate quantitative method in a technically correct way to solve a business problem.

* Case analysis

C. Analyze quantitative output and arrive at a conclusion.

2 Written Communication * Written quizzes and exams

A. Use correct English grammar and mechanics in their written work.

* Written quizzes and exams

B. Communicate in a coherent and logical manner * Written quizzes and exams

C. Present ideas in a clear and organized fashion. * Written quizzes and exams

3 Ethical Thinking A. Identify ethical issues in a problem or case

situation

B. Identify the stakeholders in the situation. * Case analysis C. Analyze the consequences of alternatives from an

ethical standpoint.

D. Discuss the ethical implications of the decision. 4 Core Business Knowledge * Course materials