Mistakes made by Parker Pen
- centralization of decision-making and
- unification (standardization) of the marketing strategy.
āIn 1984, the company launched a global marketing campaign in which everything was to have āone look, one voiceā, and with all planning to take place at headquartersā (Case study 1).
Product Quality
- The company focuses on individual customer decisions, dealing with both static and dynamic issues consumption.
- Parker Pen concentrates on behavior at a point in time, focuses on behavior over a period of time.
- The company proposes broad and diverse product lines for international consumers.
What They could do differently?
- In order to sell its products abroad, Parker Pen Company could adopt its products to local needs and cultural principles.
- When product is standardized it becomes established for minimum quality and features, competition shifts to a greater emphasis on cost and service.
SWOT
Strengths
- the making and execution of decisions is quite fast;
- pioneer in innovations;
- Parker Pen Company exclusively specializes in writing instruments only;
- the company has a competitive advantage over other competitors with a large product portfolio.
Weaknesses
- The company is operating in the retail industry, which is very volatile;
- lack of product diversity through specialization;
- Parker Pen Company may face financial hurdles if the target market becomes saturated with competition.
Opportunities
- Owing to the increased demand in Europe and Asia;
- It makes use of its excellent management team to come up with new product lines.
Threats
- competition from low priced products and local companies (especially Japanese manufacturers);
- many buyers prefer to buy low priced products.
PESTEL
Political Environment: Today, political situation in Asia and Europe is stable marked by democratic processes and liberalization reforms. Political interference and corruption are the possible risks.
Legal Environment: Asia and Europe introduce laws and regulations in order to support foreign subsidies and attract FDI (foreign direct investments).
Economic Situation is marked by low inflation rates and high income per capita. Thus, liberalization and high level of investments can be considered as opportunities for a company to enter this country.
Social-demographic Environment: All these create many additional uncertainties to those encountered in national marketing. social-demographic factors suggest fast population growth and decreased mortality rates.
Technological Environment: Changes in international markets, raw materials, or technology can force changes in production and distribution.
- Technological innovation and solutions appeared on the market greatly affect the value of fixed prices.
The New Strategy of Parker Pen
Aggressive advertising campaign and adaptation to local needs and preferences are the main success factors of this campaign.
The new strategy is based on the idea that the degree to which a culture is conscious and open rather than non-conscious and enclosed has implications for how easily a culture can be used and, in a business management context, be managed.
Lessons Leaned
The failure of Parker Pen suggests that cultural anthropology should be the core of any marketing planning and development.
Cross cultural management should investigate differences that distinguish national groups.
In spite of globalization processes and internationalization of the market, cultural differences still very important.
Before entering a new market (s), the company should explore:
- the cultural and sub-cultural variations in terms of technology,
- language,
- symbols,
- rituals and family behavior.
