UNIVERSITY OF GLOUCESTERSHIRE

SCHOOL OF BUSINESS AND LAW STRATEGIC GLOBAL MARKETING Teacher: Paul Reynolds & Anand Walser Submitted by:MD. Muhibbur Rahman Shujon Student ID: B0333RORO0412 Submission Date: 19-06-2013

Table of Contents
Introduction : .......................................................................................................................................... 3 Part 1 ....................................................................................................................................................... 3 1.1 Manchester Products Inc. ......................................................................................................... 3 1.2 Paul Logan Inc. .......................................................................................................................... 3 2 Remaining business of Paul Logan ................................................................................................... 3 3.Modes Of Market Entry ................................................................................................................... 4 3.1 Indirect Exporting...................................................................................................................... 4 3.2 Direct Exporting ........................................................................................................................ 4 3.3 Licensing .................................................................................................................................... 4 3.4 Joint Venture ............................................................................................................................. 5 4. UK Business Environment ............................................................................................................... 5 5. Competing with the UK business environment .............................................................................. 6 6. Marketing mix implementations, timings and budgets .................................................................. 6 Part 2 ....................................................................................................................................................... 7 1. The Manchester Products Inc. Brand Transition Challenge. ........................................................... 7 2. Possible decision made by MP for brand transition ....................................................................... 8 3. Inspecting the three decisions made by MH .................................................................................. 9 4. Impact of brand transition challenges for PLI to enter UK ............................................................. 9 5. Possible Outcomes of Manchester Products Inc. ......................................................................... 10 Part 3 ..................................................................................................................................................... 10 1. Contingency Plan Of Paul Logan Inc.............................................................................................. 10 2. Nature of Contingency Plan .......................................................................................................... 11 3. Plans to overcome adverse situations by Manchester. ................................................................ 11 Conclusion ............................................................................................................................................. 12 References ............................................................................................................................................ 13

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Introduction : Brand transition is like using the brands name or sometimes creating a new name for the organisation. The main aim for brand transition is to make profits and boost the identity of the companies (Schultz & Faurhault,2005). It can be seen that, in these competitive world of business it has become very difficult to run business, therefore brand transition has become a big challenge. As a result Manchester Products Inc. and Paul Logan Inc. in 2005 made their brand transition in their furniture market. Part 1 1.1 Manchester Products Inc. For office furnitures Manchester Products Inc. was known to be a top manufactures in the United States ( Quelch and Beckham, 2009). By 2009 they extended their business and started doing business on household furnitures. Soon Manchester Products made their establishment to Manchesters Household Furniture Division. One of the main reason was that their administration had trust that they had the expertise and the capability for the production. Moreover the firm had better engineering skills and with designs, ergonomics that can be useful and put into practice for household furniture products ( Quelch and Beckham, 2009). In 1999 the company was launched and had three product appearances, they were the Manchester Relaxer, Media & Entertainment and Home office lines. The Relaxer was made of ergonomic recliner which rapidly turned well liked and admired because for their trend and fashion in style as well as in comfort. When Manchesters home office and media/entertainment were promoted in the competition market, it had good feedbacks from consumers. As a result their sales amplified from $200million in 2003 to $260 million in 2004. Therefore the administration had the vision for a long term business with potential revenues and profits from Manchester Household. (Quelch and Beckham, 2009). 1.2 Paul Logan Inc. Paul Logan Inc was one of the most famous company for consumer products and was recognised as a standard of living brand in style and fashion.(Qeulch & Beckham,2009). Paul Logan did their operations in four different sectors : Apparel, Home Dcor, Fashion Accessories and the Furniture Division. Apparel was based on fashion wears for women, men &children which gave them 40% of their revenues whereas Home Dcor 26% Fashion Accessories 23% and Furniture Division 11% correspondingly. By the end of 2004 Paul Logan they reached a revenue of $9 billion, as Paul Logan provided furniture products with excellence in quality, resulted them to be the top market share positions. 2 Remaining business of Paul Logan When Paul Logans Furniture Division did acquisition with Manchester Household to run their business in the United States had both positive and negative effects. After the agreement done in 2005 Manchester Household will have a chance to use Pa ul Logans brand name for three years, therefore Paul Logan got percentage from their(MH) business. Due to acquisition Manchester Household had the right to use their management, their
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sales as well as their design team, moreover their distribution centres and 150 products of Paul Logan Furniture Division.(Quelch & Beckham,2009). In addition Paul Logan was stop for doing any kind of furniture business for the upcoming ten years. Although PL had restriction for doing business, they still had other business which they can run, which are Home Dcor, Apparel and Fashion accessories in the United States. Therefore Paul Logan Inc. was running their business and making profit by its brand transition with Manchester Products Inc.

3.Modes Of Market Entry When a current market is over fooled by other businesses or organisations, the administrators or the management of the businesses plans for expanding their organisations globally or business internationally. In a result the management decides to expand their business globally as known as foreign markets (Foley,2004). Therefore a lot of procedures are followed to enter a foreign market which has been discussed below. There are two ways to do exporting: Direct and Indirect Exporting. 3.1 Indirect Exporting The organisation exports its services and products through an agent whom sells their products sometimes to the trader or sometimes directly to the customers.(Foley,2004). Here in this procedure the exporter doesnt have to invest on marketing, one of the main reason is that the agent/intermediary is accountable for selling the products of the business. The main disadvantage doing business like this is that, the exporter doesnt have any power on their products for selling in the foreign makets.(Taylor,2011)

3.2 Direct Exporting Whereas in direct exporting the business exports their goods and products straight to the customers or foreign buyers. Here the exporter have power to control over their products and services to their customers, therefore they are more involved than indirect exporters. Hence they have to do a lot of marketing as they are responsible for their companies profit or loss. But here there is an advantage as there is no involvement of agent/intermediary their profit margin is much higher.(Taylor,2011) 3.3 Licensing The term licensing can be demonstrated that when two firms comes in a contract or an agreement , therefore here the two companies after agreeing in contract they gave consent to use their intangible assets for example companies trademarks, production processes, patents and production techniques etc. Here the strategy is like using the other companys property to reach both the companies target. Here the licensee has to pay fee for their
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rights for using their services. Franchise, Manufacture agreements are mostly common used in licensing(Foley, 2004 and Taylor, 2011) 3.4 Joint Venture Joint Venture is an agreement between two or more organisations give consent to their possessions/resources for one goal. This agreement can turn down to be a new mission for their business target. Therefore when a joint venture takes place both the organisations are accountable for their profits and losses. Both the organisations creates a third new organisation which is independent and it is not important that they have to be managed by both of the organisations. (Taylor, 2011) For example Sony-Ericson were individual companies, they were known as Sony and Ericson before the Joint Venture. After joint venture they turned to be Sony-Ericson. Sony had the marketing responsibilities where as Ericson took manufacturing skills, together they turned to be one independent organisation. As it was a very tough and competitive market, they came in decision to work together as a team and beat the other rivals in the phone industry market, this became an advantage for them.(Taylor,2011)

Recommendation mode of entry for Paul Logan Inc. Paul Logan started focusing on its rivals in 2004 for fashion wears(Quelch and Beckham, 2009) Therefore to expand internationally their Apparel and Home Dcor business they will have to do a market research, the environment to do business, budget for investment before stepping in the foreign market. 4. UK Business Environment PEST analysis can be done for Paul Logan, if they decides to spread out their business in the UK. Table 1: PEST Analysis (Source: s1tragedy1c1leaders, 2012) Political Political issues is one of the main factors that should be kept in concern. As we can see that misuse of child labour and cheap labour occurs in third world developing countries. This occurs due to globalisation, competitiveness between retailers, and the rivalry among countries for earning revenues are all driving the labour market. Therefore a lot rules and regulations have been made for the labours. Legislation against child labour has also been made and workers health and safety Acts are now strictly observed by the Trade Unions. Therefore a number of campaigns in the UK against the above issues took place and now they are working as allies with the European Union to stop this abuse of labours. Economical In the past and recent years the rise in VAT has effect the trends of consumers to diverge their choices on choosing a product in the UK. As it can be seen that the consumer has a difficulty on making a decision on buying their own UK products which are much more expensive than others
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which are imported in the country.

Social

Social factors can be a important factor as for a country has different cultures and way of living, for the UK market they need to know the fashion trends of the people . The fashion which is popular in the US may not liked by the UK as sometimes they follow dress codes for example as formal clothes in offices, some people like vintage kind of look, some casual etc. So social and cultural factors should be reviewed thoroughly.

Technological

Technological improvements can be a very big advantage as it increases the products process and can deliver demand of the consumers. Though the most popular material are cotton and leather products but products of fake furs, Lycra has also gone popular as it is cost effective and fashionable and has made a big success due to technological advancements, resulting increase of sales for retailers , fashion outlets.

5. Competing with the UK business environment Paul Logan Inc. need to survive in the UK competitive environment because companies like Primark, TK Max,Argos and other UK brands which are very competitive among themselves, it will be very difficult for Paul Logan Inc. to mark its name among consumers. (strategy leaders, 2012). Therefore it can be recommended that Paul Logan Inc. can use a strategy by Exporting Directly their products to the UK. They will have their productions and operations in the US and they will export their products in the UK market, in a way they will have the control of the whole business, the only thing which might be a obstacle for them is a huge amount of investment should be made to enter UK. One of the other ways PL can use by Licensing, here they will have to share their expertise and other techniques as well as trademarks etc. to the firms who wants to pay their rights to get the benefit of PL facilities. In a sense PL wont have to come with big investment. 6. Marketing mix implementations, timings and budgets The Marketing mix depends on four main Objectives, these objectives are important for a successful marketing of a products: Product Price

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Place Promotion

Product- The product which will be marketed should have nice features, it should look good and should work properly according to its features. Price- The price of the product should be right, so that a consumer can choose that product for looking at the price, which should be according to their affordable reach. Place- The goods/ products should be placed in the desired place so that in can be achievable when needed . Promotion- The firm needs to make sure that their product is known to everyone through promotions. This helps customers get to know about the product and its features.

Part 2 1. The Manchester Products Inc. Brand Transition Challenge. Manchester Products took over Paul Logans Furniture Division. Due to the acquisition of Paul Logans Furniture Division spread out MPHD vastly which had provided them to have a competitive brand name and moreover helped them to reach top-leader in the furniture sector. (Quelch and Beckham, 2009).

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Nevertheless MH after the acquisition had an opportunity to enter the household supply channel and which gave realise for Manchesters CEO Collen Jones that it will be a big combination of skills of PLDF and MPHD engineering and manufacturing expertise and innovative designs together they can reach the best organisation in the market. (Quelch and Beckham, 2009).

As because of the acquisition, it approved Manchester to use the Paul Logans Furniture Division management, design, and sales team moreover they can also use their ten distribution centres together with four manufacturing facilities with their 150 products and the power to use the PL brand name for more three years. Unfortunately Paul Logan had a restriction to do furniture production for ten years. Though Paul Logan Furniture Division was sold to Manchester, they still had other products in which Paul Logan could use their brand name which were Apparel, Home Dcor and Fashion Accessories. (Quelch and Beckham, 2009). Lastly Paul Logan wanted to clear their balance sheet and wanted to enter the international market and wanted to expand their business organisation in Apparel and Home Dcor. Therefore they needed to take a decision in which method they should use to step in the foreign industry market. 2. Possible decision made by MP for brand transition As PLFD was one of the top leading products for household furnitures, the main goal for transition strategy was to increase the market values of the products that Manchester Products provided.(Quelch and Beckham, 2009) On 7th January a meeting involved for an ideal strategy which is to be followed for brand-name transition. Three points were stated: As National Furniture Company was the most competitor for PLFD, NFC stated that because of the acquisition between MH & PLFD the time of Paul Logan brand came to an end. (Quelch and Beckham, 2009).Therefore Mr. Gary Burnett, a senior executive of MP proposed that for not using the PLFDs brand name. His reason was that it will reduce confusion and will show loyalty to Manchesters brand. (Gary Burnett, COO) Moreover they saw that PLFD had good connections and relationships with buyers and customers have more trust on PLFD, so when the customers got to know about the acquisition they were confused about buying the product as it will not have Paul Logans brand name with them. (Quelch and Beckham, 2009).Ms Lisa Marks, another chief officer suggested that Manchester doesnt have what it takes to earn customers loyalty, their one of the main cause to buy Paul Logan association was for the brand name. (Lisa Marks, CFO) Lastly Mr. Jeremy Campbell, a senior executive also gave his view(Quelch and Beckham, 2009). He said that as after three years the companies name will automatically be dissolved they can use some of the products on Paul Logans name and make customers believe that Paul Logan still exist and slowly earn their trust on their transition. (Jeremy Campbell).
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Manchester product can pick one or two product, advertise them and make customers aware about Manchester Product brand (Quelch and Beckham, 2009). So Jeremy Campbell, a senior executive of Manchester Product suggested the following point: 3. Inspecting the three decisions made by MH A suggestion was made by Campbell, VP of Strategic Planning for MP that to promote a dual-brand advertisement. This will show the name of both the brands, but Manchester advertising agency told that , if they promote this add, consumers may become confuse about the brand and discouraged not to promote a dual-brand advertisement as PL will dissolve in three years. Instead they proposed that to create an advert campaign nationally about Manchester top fields and not to include the Paul Logan name on the advert. (Quelch and Beckham, 2009). Manchester had a concern how to make consumers aware of their acquisition through this advert. While they were facing difficulties on finding a solution of the situation, Jason Adams, VP of Marketing for MP acknowledged three decisions. He found that it is better that to keep PLFD brand name will be better rather rebranding it, but can be added with celebritys name and stated that he will have to analyse more on the differences in push and pull strategies between PLFD and MH and can see the result in the next three years. 4. Impact of brand transition challenges for PLI to enter UK Due to the decisions made by the Manchester Products Inc, Paul Logan still had potential to enter the UK market as they had their brand name and goodwill. They knew that their consumers know about their brand name and the customers still had faith in them. Moreover they had four divisions other than furniture, their company was much bigger and better than Manchester because most of their revenues came from other sectors as well. They will have to a market research on fashion wears, accessories and Home Dcor , they still can use their brand name on those products as they are not part of the acquisition. They can do business may be directly or indirectly as well, because they had buyers and connections whom still believes in them. Their brand name were much appreciated to consumers as they know, customers know their brand name more than Manchester. Though they have reputable brand name and goodwill they still might face hurdles as they might have to invest a lot o enter the market and some factors such as political, economical, social and technological factors. They might face hard to control their business if they do business indirectly as they will have no control on sales or profit. But decisions made by PLI will not effect that much for Paul Logan as itself it is a huge company with different sectors.

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5. Possible Outcomes of Manchester Products Inc. One of the main possible outcomes of Manchester Inc. after discussed below: The statement made by Gary Burnett, COO for changing their brand name to Manchester in all their products may result in a confusion among their customers, whereas it may also bring an interest for the new customers about a new product which have came in the market. Moreover Miss Lisa Marks, CFO opposed the proposed decision and gave her own opinion that as Paul Logan had a brand name they can use that brand name as an advantage and should use it as long as possible because of its reputation in the market from buyers, traders and consumers. Well this can be a very good advantage to use the brand name and have a higher selling rate as well. Lastly Mr. Jeremy Campbell, VP of strategic planning came with a very different proposal, he said that they can slowly introduce some products in the market, which can reduce the risk of loss and gradually they can earn the trust of the customers and slowly dissolve the name of Paul Logan brand name from their products. From the above three proposal the third suits better as there will be a very low risk for loss in the market and slowly they will be able to achieve the market as Paul Logan had good connections. Part 3 1. Contingency Plan Of Paul Logan Inc. The aim of contingency plan is to let company do its normal operations in crucial times where an unexpected incident occurs and to keep the cost to a minimum level. (Fulmer, 2005). Paul Logan Inc. can use the contingency plan to prevent their business from disaster. They should Recognize their main goal of the business and its functions Find out what resources could help them to support in vital functions. They should have a prediction of potential contingencies Identify the strategies that can be implemented in critical situations. Apply the strategies. They should put the strategies into practice and find ways of improving them.
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2. Nature of Contingency Plan i. Incident response plan (IRP) It mainly acts instantly for an incident. The main aim is time and costs. There is a policy for an incident response plan, where is states what causes an incident to occurs and what are the steps that should be followed in case of an incident. (Rouse, 2005). Disaster recovery plan (DRP)- This mainly emphasizes just after the disaster occurs on restorations. They consists of precautions, therefore to minimize the effects of an incident. It involves of an analytical of business for its continuation, and focusing on preventions.(Rouse,2009) Business continuity plan (BCP) - The main aim is to start an organizations operations in a different alternate site until the incident site is suitable to work.(Swanson,2011).

ii.

iii.

3. Plans to overcome adverse situations by Manchester. Some of the plans by Manchester Inc. can follow to overcome adverse situations are given below: Walsh (2012) Step 1: Programme Management By creating a planning team, which will put one employee for every sector of the business, where they will supervise. Moreover the team will find out the threats and will recruit specific team which will act in that situation. (Walsh, 2012). Step 2: Planning They have to find out what risk can be controlled and what are not. Natural disasters are unavoidable so they need to be prepared for that. Suspicions formed by employee can be estimated and is possible to control. They will have to make a list of that for every department wherever they are located. (Walsh, 2012).

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Step 3: Implementation In this part some of the steps are followed(Walsh,2012) Step 4: Testing and Exercise They should put into practise the situations and do training so that if a disaster comes they are prepared for it. (Walsh, 2012). Step 5: Programme Improvement While doing step4, if the outcomes are not up to the mark, they should improve their skills . (Walsh, 2012). Conclusion
From the above case it can be concluded that Manchester Plc want to come into the market by themselves and want to remove the name of Paul Logan from the market, but Paul Logan Inc. have alternative plans to expand to remain in the market, they want to enter the UK market . Therefore they have to take some decisions on how to enter the market, which entry mode they should use, to cope with the competitive environment etc. Lastly Manchester Products needs to create new policies about their acquisitions with PLFD on using their brand name, distribution channel etc.

Action plans Operating Procedures Assumption of warnings, Resources Mobilization Communications

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References Foley, J. F. (2004); The Global Entrepreneur: Taking Your Business International; 2nd ed., USA: Business & Economics, pp: 309-345. Fulmer, K. L. (2005); Business Continuity Planning, 3rd ed, USA: Rothstein Associates Inc. Czinkota, M.R. and Ronkainen, R. (2009), Principles of International Marketing (International edn.) South-Western, Div of Thomson Learning. Froot, K. A. (2008); Foreign Direct Investment, USA: The University of Chicago, pp: 56-70. Quelch, J. A., and Beckham, H. (2009); Manchester Products: A Brand Transition Challenge. Harvard Business School Brief Case, pp: 1-11 S1tragedy1c1leaders, (2012); Fashion Industry, (online) Available http://s1tragedy1c1leaders.wordpress.com/2012/07/26/fashion-industry/ (Accessed 1 June, 2013) at:

Taylor, D. (2011); Market Entry Strategies, (Online) Available at: http://www.globethoughts.com/2011/international-marketing/market-entrystrategies/ (Accessed 30 May, 2013). Swanson, M. (2011); Contingency Planning Guide for Federal Information System, USA: DIANE. Rouse, M. (2005); Incident Response, (Online) Available at: http://searchsecurity.techtarget.com/definition/incident-response (Accessed 11 June, 2013) Rouse, M. (2009); Disaster Recovery Plan, (Online) Available at: http://searchenterprisewan.techtarget.com/definition/disaster-recovery-plan (Accessed 12 June, 2013). Walsh, D. (2012); The Five Steps of Contingency Planning, (Online) Available at: http://lifescienceleader.com/magazine/current-issue-3/item/4349-the-5-stepsof-contingency-planning (Accessed 12 June, 2013).

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