3 Cases Global Marketing Hollensen: Senseo, Harley Davidson, Nokia

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Assignment Global Marketing Block 2 – 2010/11 Lecturer: Jan Koghee

Group: Doris Mulleder 1591183 Franziska Philipp 1591198 Anne Vroegindeweij 1592728 _____________________ _____________________ _____________________

Table of content:

Case Senseo ............................................................................................................................. 2

Case Harley-Davidson.............................................................................................................. 5

Case Nokia ............................................................................................................................... 10

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Case Senseo

1) What are the key success factors in this industry?

As mentioned in the case private labelling is of great importance in the coffee industry. More and more customers trust private labelled products and buy them instead of a well known brand which is mostly more expensive. E.g. the discounter Aldi plays a major role in the coffee industry, especially in Germany, by being the leader in selling coffee pods. Only when it comes to fresh coffee, Kraft Foods and Tchibo are still ahead of Aldi. Supported is this success by the rating of Aldi coffee pods in the “Stiftung Warentest”, a consumer magazine who tests all sort of products. They rated the Aldi pods as “very good” on top of the rating and followed by all premium and more expensive brands.

So obviously the price is one of the key success factors. But it’s not the cheapest product which is bought most but the one where the cost/performance ratio is best. Especially when it comes to coffee the quality gets more and more important. The companies that offer highquality coffee achieve better sales and reputation than companies with lower quality. If cheep coffee is coincidental also good (Aldi!) the success is nearly predictable.

Above all is to mention that a company whose reputation in the market is generally good, will do easier do launch a new product and create demand for this new product. A collaboration between two companies can even gain more profit because they can benefit from each other’s reputation and experience. This is what happened when Philips and Douwe Egberts decided to launch a product together. Not to forget good marketing activities done by people who know their job and are able to make a co-branding strategy as it is the case with Senseo to a success.

2) Explain how the competences represented in the Senseo concept can create international competitiveness?

According to Hollensen a firm creates and develops competitive advantages in the international market interactively with the environment. They must be able to listen to their

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customers, competitors and public authorities. To show the international competitiveness the firm must use their existing resources, competences and relations and establish a competitive basis. That’s what Senseo did and does.

They showed great understanding of the market by opening up their pods and machines to be also used with machines and pods from other brands. This offers great flexibility for the customer which is exactly what she/he wants.

For the competitors of Senseo, as they were also retailers like Aldi or Wal-Mart who tried to rebuild the Senseo machines, it was quite difficult to keep pace with Senseo as their main success doesn’t come from selling their machines but from selling good coffee. And Douwe Egberts as one of the leaders in the coffee market stands for quality that the customers have trust in. This alliance works although more profit comes out of the pods sales because Philips also gets a part of the profit from these sales and not only from the machines.

Instead of creating two brands they decided to set up a new brand “Senseo” for which they created a co-branding strategy which was very successful by launching a product- innovation and creating a totally new segment where they managed to shift...
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