espoir-global faceoff

Commentary On Global FaceoffEspoir Case

Meral RAGOM ( I. Part )Halil YILDIRIM (II. Part)

Commentary on Espoir Case Study

I. PART : SUMMARY OF THE CASE

Case starts with discussion about idea of Natasha Singh ,( excutive vice president & global marketing officer) of $1.1 billion Espoir cosmetic with Ed Johnson CEO, about:

Associate Espoir new summer line with the release all over the world by sponsoring Diannas she Devils movie to lounch a global-brand building strategy.

She emphesise their three stars are located in Europe, Asia and South America as fastest growing markets .

She offer create three new lipistik and nail polish combinations in the right palette for each of the three stars ,and then associated stars with the advertising.

When films gets release in each country ,we can lunch new product in specially design combination pack,with new name as Espoirs anniversary line (next year they wll celebrate 50 years)

1.How you can find enough budget?Answer of Singh : North America marketting

head will foot some of the bills, Two of our stars have big ethnic markets in U.S Just i need to get other regions to chip in,2. If recession in U.S get any worse i force to

cut marketing budgets again,country heads will have little left for local advertisings after paying for global promotion.

They will blame you if you dont meet targets !

Meeting with Jacques Dubois Espoirs marketing head for Europe.He had warmed to idea of the big movie based promotion to mark

the companys golden anniversary .He admitted that Espoir’s archrival, Revlon, had boosted top-of-

mind awareness by tying in with movies like the 2002 Bond film, Die Another Day,

During the disscution he didnt like the idea about set up a central Web site that would allow people to buy customized products from Espoir.

She wanted to test the initiative first in North America and extend it to Europe once but Dubois thinks that this idea will not work.

A Web site for European customers must have a different look and feel from the Americansite. It should also have a different name if it is to appeal to them.

Singh try to sound out marketing head of each region in person : Estern EuropeMeeting with Sylko Mazur ,the head of Espoirs operations in

Estern Europe.He dosnt accept to have any part to global promotion His disagrement was based on differences between Eastern

Europe and world. Movie-based promotions won’t do anything for their sales. He was thought that they are in the beauty business,not the movie business!

appointing beauty queens like Miss Russia and Miss Ukraine as brand ambassadors would strike a chord with customers, in Eastern Europe and we can create acontest-based promotion.

Customers will write in with suggestions for new colors, eachbeauty queen will pick her favorite, and therewill be lots and

lots of prizes!

Argued of singh about Mazur idea :First :we have different world,in these daysSecond :I’ve stayed away from beauty contests because they

are off brand. The Espoir woman is smart, independent, a risk taker. She doesn’t identify with pageant queens.

Third: I’ve chosen colors for the global promotion that will work in Eastern Europe also .i will admitt do modify global strategies sometimes!

Argued of Mazur : the promotion will eat into my marketing budget, and I cannot afford that.

I need to be quick, tactical, and responsive to local needs, and your templates and rules about standardization only slow me down

Singh try to sound out marketing head of each region in person :South AsiaMeeting with Ravi Narayan head of South Asia marketing .Their discussion was based mostly on problems that they are face for

growing their market in indea .Problems were as :Competition is getting stiffer since several Asian brands have

launched their products in India in the last six months. Local brands are offering large discounts, and direct marketing in cosmetics is catching on.

He mentioned that consumer habits are changing faster than their imagine.

So cause of those evidence that he visited during his trıp he argueed with this plann but he add also A global strategy will resonate in India in some cases, but I doubt if we will be able to

do away with local marketing initiatives. There are large income differences in India, and it all depends on the market you want to tap. Moreover, it’s tough to overcome cultural differences.

Making decision with ceo JohnsonEvery country head believes his or her country is

unique. And it’s risky for them to pin their hopes on a global promotion when they’ve never done so before.

What’s more, I’m not sure our brand has the same image all over the world.

Why should we waste money on a global campaign that may end up confusing our customers?”

We will save costs by building brands through global strategies and allowing local initiatives to drive sales managers concede that the quality of campaigns we produce is better than those done locally.

II. PART: COMMENTARY ON GLOBAL FACEOFF OF ESPOIR

Local Responsiveness – critical asset Sense of Customer’s needs – obligatoryDespite, Universal Appeal – inevitableCoherantly Managing a Brand; positioning,

strategy, communication..Keep the balance! Vibrant Brands; flow of new features,

uptodate

Keep the Balance !

Tension between need to create a global brand and achieve local responsiveness

HONDA accord example

Do you think Accord has a standart size in every region?

Despite All Accords are environmental friendly, have high performance

GlobalIzatION; advantage or DISADVANTAGE ?

Globalization- interdependies, tecnology etc.Effect on customer; increase the selectivity,

fast changing consumer’s needs, preferencesOne size fits all, is it true? KFC and Pollo

Campero Example

ESPOIR problemsFallacies of Singh

Singh - correct on the idea of advertising and globalize but the way she does?

Imposing idea on othersLess consideration of localnessStrategic Marketing ; Local ResponsivenessPackaging standartization – truePricing ? Distribution channels? Gray Market

Risk

DON’T IMPOSE

No Ego Wars, No Power Struggles !!

COORDINATE!

Lack of Organizational Structure! Roles, autonomy, authority – claritySharing values, Internal Communication, Unclear what Sight means by global?

Definition of Global- should be clearGlobal- avaible in many countries not same

Before strategy, think how to executeEliminate the resistance of subsidieriesList global goals, build up a common

basementDecide the personality of brand; intellegent,

orginality, clarity..Goals must be same , but the way? Keep the

flexilibilityCreate a measument system

No Empire was Built in a Day !

Thank you for your TIME