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Case Evaluate the entry mode chosen. Discuss advantages and disadvantages.
Should Pizza, Oh! Standardize or customize its products and promotions? If Pizza, Oh! Chooses standardization, in which form should their
standardized approach be? Which one of the three branding decisions should the company take?
1. Fully owned marketing and sales office vs. Independently owned franchised
outlets Advantages Fully owned marketing and sales office Represents a fixed and long term tangible asset for the company Marketing and sales campaign can be better facilitated and monitored to ensure rapid sales. Disadvantages More expensive and adds to overall cost of production and startup These marketing and sales campaigns add to the cost of promotion and overall cost of production.
Less expensive to implement and reduces overall cost of production and initial startup. Economies of marketing come into play as the outlets would handle marketing and the cost that come with
Control over the franchised outlet is limited; the vision and brand image might be lost in process. During the Marketing campaigns by the outlets, the vision and purpose of pizza oh as a brand might be lost in translation.
it.
2. Should Pizza, Oh! Standardize or customize its products and promotions? Pizza oh should standardize its products and promotion. This standpoint is supported by the following reasons.
3. If Pizza, Oh! Chooses standardization, in which form should their standardized approach be? Standardization with a neutral image would be most appropriate as opposed to the Canadian image. The reason for that is not farfetched as Canada is not particularly renowned for a food or pizza production culture. More consumers might opt for Italian pizza. Standardization with a neutral image can be achieved by effectively maintaining a general brand standard but customizing according to the needs of the immediate country. In summary, the unique features that distinguish
pizza oh would be merged with local taste and unique service delivery in every country. It should go for a neutral logo and advertising strategy, primarily focusing on the pizza and not the Canadian origins of the same. 4. Which one of the three branding decisions should the company take? The company should try as much as possible to maintain the pizza oh brand in every country except in places where the name is forbidden by law or already in use. By doing this, the global brand image and the abundant benefits (economies of marketing, ease of finance, increased customers and revenue) that come with it will be captured.