IIPM

PGP/FALL & FW/2012-14

THIRD SEMESTER END TERM EXAMINATION 2013
Subject:

International Marketing

Maximum Marks: 75
Time: 3 Hrs

INSTRUCTIONS:
Carefully note the marks for each question.
Begin answer to a new question on a new page.
Write legibly and keep the length of the answer as per the weightage (in terms of marks) assigned to each
question. DONOT be unduly short or long in providing the relevant details.
The question number of the answer to the question you are attempting must match with the corresponding
question number in the question paper.

NOTE:
You have to answer question 8 (on case study) compulsorily, plus 4 more questions. In all you have answer 5 questions.
All questions carry equal marks.
Q1 What is the pattern of the income distribution in the world today? How do developing countries markets are
compared with those of high income markets in the proportion of income going to the bottom and the top 20 percent of
the population?
Q2 The methods of political risk management like the; Avoidance, insurance, negotiating the environment and
structuring the investment are simple, has planning? Explain?
Q3 Technology has helped the in overcoming the in-efficiencies in the corporate sector, it down sizes the manpower cut
down the space and bring the awareness in the masses in all the spheres of the industry/ Explain?
Q4 Explain the International Product Lifecycle with a diagrammatical representation of the product innovation via
Multinational Companies or the Countries around the Global dividing them into the Innovators, Developed, Developing
Countries?
Q5 Sales promotion in the International Foreign Trade has great objectives and importance? Explain?
Q6 Overseas Marketing Research has a role in the foreign market determining all the International Marketing Policies?
Explain its relevance with the Export Business?
Q7 The current Foreign Direct Investment in the Retail Sector has an impact on the mom-and-pop shops of retail sectors
coming on its way? Explain the statement?
Q8Case Study (Compulsory)
Unilever vs. Nestle
Unilever: Unilever was established in 1948 and produces house hold products like; detergents, toiletries, cosmetics, and food
products. Unilever is a large corporation that has over 500 firms worldwide. Their products are sold in more than 170
countries. Unilever originated in Europe and then expanded to the United States, starting with two U.S. factories. They can be
located in parts of Asia, Africa, North America, the Middle East, Western Europe, and South America. Unilever has a very
impressive portfolio that includes eleven brands that annually gain revenue of more than one billion dollars each. Unilever is
aiming for global processes and alignment of their human resource activities. Unilever is working with Accenture to identify
supply opportunities within the marketplace and will look to develop longer term relationships with a rationalized base of
preferred suppliers. We seek to do business with those who can supply goods and services in a reliable and cost effective
manner. (2010) there is even a way to apply to be one of
Unilevers suppliers that will provide human resource goods and services. Unilever gained a lot of their success because of the
ability to adapt to new markets and technology. In order to help with the increase in revenue, Unilever changed companies
focus to places with higher potential for growth. Concentration on new emerging markets like China, who had a high young
population with increasing incomes, caused their developing world sales to increase by substantial amounts. Even while the
company was facing struggles such as the Great Depression of the 1930s, they were concentrating on diversification and
expansion of their food markets. Unilever put great efforts into research and development. Unilevers marketing efforts only
varied slightly from the 1950s until the 1980s. In this time frame Unilever focused on technology, new products, new global
markets, and keeping up with the world economies expansion. By the time the 1980s arrived Unilever was one of the biggest
global corporations which allowed them to focus their marketing efforts on their existing portfolio. By the 1990s Unilever

chose to keep its focus on its portfolio and even eliminated some of their brands so they could keep a strong focus on the top
global sales products. In the 2000s the company implemented a new five year strategic plan that focuses on the needs of
consumers and a better future.
Nestle: Nestle is one of the largest consumer packaged goods company in the world that focuses on increasing the nutritional
value of the food that is consumed while increasing the taste. The company is classified as a nutrition, health, and wellness
company. Nestle was a Swiss company that was founded in 1866. Just like Unilever, they devote a lot of time to research in
development. Nestle invest around 1.5 billion in research and development every year.
Nestle markets nearly ten thousand different products to 130 different countries across the globe. Nestle has always been
about nutrition, so their global marketing over the years has been based off of demographics that show the changes in living
standards and life styles. In the long history of the company, the times have changed. People live longer, and the global
population has increased. This has had a huge influence on the way the Nestle runs their business and what products have been
the main marketing focal points. Nestle and Unilever both focus on health and wellness, but instead of focusing on the actual
needs of the consumers like Unilever, Nestle focuses on their corporate wellness unit to bring good food, and good life to all of
the consumers. Other words, they devote more time and effort into ingredients then the actual consumer. The corporate
wellness group is a global network that is globally placed to help promote the value of nutrition. Their strategy is to make sure
to provide better tasting products that are better for everyone. The two corporations also differ in marketing because Unilever
is sticking to its profile and even eliminated products, but Nestle is creating and enhancing hundreds of Nestle products.
Nestles packaging plays a big role in their marketing. Each package has what is called the Nestle Nutritional Compass, to
show consumers what they will benefit if they purchase the product. Nestles philosophy is that nutritional information is not
enough. The compass has three elements: Good to Know; which gives factual information on nutritional contents. Good to
remember; which gives tips for healthy lifestyles, cooking, and diet. Good to talk; which invites the consumer to call the Nestle
consumer service team or log on to the Nestle website. (2006) Just like Unilever, Nestles marketing strategy is looking
towards the future of their products. They are working on products that will be geared towards gestational issues, Alzheimers,
diabetes, obesity, and other items that will contribute to the health and wellness of the consumers.
The practical and legal consequences of following each approach. The practical and legal consequences of Pragmatic
approach: A pragmatic approach to business ethics is argued for in this volume, which demonstrates the usefulness of the
approach by applying it to a variety of issues. These issues are broad and far-reaching and include the relations between
rational and moral//ethical decision-making, the limits of loyalty to employers, the impact of trust on business and the role of
commercial public opinion polling during elections. The author also covers advertising, tobacco promotion, manufacture and
marketing of armaments, concentration and taxation of wealth, and the North American Free Trade Agreement. Complacent
approach: Any consultant will agree that the best companies make the best clients. This isnt just because mismanaged
companies are unlikely to have the required breadth and depth of high-quality management. A deeper reason is that excellent
companies are prepared to confront the deficiencies in good time. Lesser, smugger managements wait until crisis
manufactured by their mismanagement forces their hands. Businesses are currently able to find people to produce todays
goods. That points to a rough balance in the labor market. In contrast, if businesses (new or expanding) are to create better paid
jobs, using higher skills, this can only happen if more people are adequately prepared for new jobs that need enhanced skills.
The skills deficit will not be avoided if Government and business continue with their current complacent approaches.
Responsible approach: Globalization, environmental disasters and social hardship caused by companies have changed societys
expectations vis--vis the way businesses operate. The information society has helped to increase transparency with regard to
business practices and their consequences for society. Nowadays, well-informed citizens expect companies to take social and
environmental concerns into account in addition to achieving good financial results. Increasingly, citizens are willing to
withhold their custom and investment if companies do not live up to these expectations. Companies have reacted by
developing a total responsibility approach to management, combining the drive for good financial results with the goal to live
up to their social and environmental responsibility vis--vis employees and the communities where they are based. In this
context, different initiatives have been developed at national and international level in order to promote the concept and it has
become clear that there is no one size fits all approach. Ethical approach: Ethical principles provide the foundations for
various modern concepts for work, business and organizations, which broaden individual and corporate priorities far beyond
traditional business aims of profit and shareholder enrichment. Ethical factors are also a significant influence on institutions
and public sector organizations, for whom the traditional priorities of service quality and cost management must now
increasingly take account of these same ethical considerations affecting the commercial and corporate world. Steps that a
company can take to ensure that management operates in a legal and ethical manner i.e. steps to ensure management operates
in a legal and ethical manner are given below. Build respect, credibility and strategic importance for the HR profession within
organizations, the business community, and the communities in which we work. Assist the organizations we serve in achieving
their objectives and goals. To inform and educate current and future practitioners, the organizations we serve, and the general
public about principles and practices that help the profession. Positively influence workplace and recruitment practices.
Encourage professional decision-making and responsibility. Encourage social responsibility. Measure the effectiveness of
HR in contributing to or achieving organizational goals. Comply with the law. Work consistent with the values of the
profession. Strive to achieve the highest levels of service, performance and social responsibility. Advocate for the
appropriate use and appreciation of human beings as employees. Advocate openly and within the established forums for
debate in order to influence decision-making and results. Be ethical; act ethically in every profession interaction. Question
pending individual and group actions when necessary to ensure that decisions are ethical and are implemented in an ethical
manner. Seek expert guidance if ever in doubt about the ethical propriety of a situation. Through teaching and mentoring,
champion the development of others as ethical leaders in the profession and in organizations
A. How do you differentiate the Uniliver and Nestle?
B. Discuss the practical and legal consequences of following the above approach?
C. How to ensure that the company runs in a legal and ethical manner?