Ch. 5 Developing a Global Vision

Entering the global marketplace for any company presents its set of challenges, obstacles, rewards and opportunities. Just like doing business domestically firms must use the knowledge and skill they implement into their marketing plans to move into international markets. From chapter 4 we remember and are familiar with the Four P’s. In the global marketplace it is the same, however now with new elements in place, are affected and are affected by a larger and more complicated environment. Where global business and the four p’s are concerned a few key factors differ from doing business in the firm’s home country.

A firm must decide if its best to alter a product before it enters the global marketplace, or perhaps after the experience of seeing how it has performed once in the marketplace. Sometimes products may need radical changes to enter and be better effective in new markets; products often fail because of cultural differences, price points, and advertising that does not meet to needs of the diverse consumer base of the international marketplace.    

As with domestic markets, managers must be inventive adaptable and forward thinking to help ensure the growth and success of the firm. New products from existing companies can be invented and packaging may be altered; cultural values and needs differ extremely through a variety of nations and this should also be considered; the price that products will be sold at and the value of a nations currency are all factors involved with going global.

In 2006 Burt’s Bees sales topped $250 million and currently the company has satellite offices in the U.K. Ireland, Canada, Hong Kong and Taiwan. Burt’s Bees sell their products to large stores like Target.com and smaller specialty boutiques in Europe and Asia. After the purchase by Clorox the company wanted to expand to new markets like China, but experts have agreed that entering into the Chinese marketplace clearly has a huge potential for growth but nevertheless presents its own challenges specific to the nation. The country is the No. 3 beauty care market in the world and is expected to rank at No. 1 with its ever-growing population and economic up-turn, providing an environment that is ripe for a large increase in sales revenue. The move into China would present high-level opportunities since the Chinese consumer it attracted to products that are natural and safe, additionally a market for lip care products is almost insubstantial, which is one of Burt’s Bees best selling products in the natural care market. In a report on Burt’s Bees move into China the VP of Global Marketing, Jim Geikie said, ‘there were lots of reasons to be excited.’ Yet the company initially found one major hurdle that struck far close to the core values of the company. None of Burt’s Bees products are tested on animals and this is something that the company stands firm on while upholding ‘The Greater Good,’ yet the Chinese government requires that all imports be animal tested. Burt’s Bees worked for two years to figure out a strategy that they were comfortable with to enter the Chinese marketplace; they worked with government agencies, local manufacturers, the use of Clorox government relations and experience, and finally figured out a way to be comfortable with the use of proper resources to work and sells products in China. 

Sources: Cosmetic Design, News Observer, Trifecta, Burt's Bees