Passage 1
Parker Pen's Globalization Strategy
When Parker Pen Company decided to launch a global marketing strategy 20 years ago, some observers were puzzled. Although Parker's name was well-known the Wisconsin-based company brought limited resources to the task. Annual sales of Parker writing instruments had never exceeded million, and the company had never budgeted more than million a year for advertising. Still, Parker's' high-qual- products were sold in 154 countries, and its marketing executives were eager to design and implement a global strategy for Parker Pen. In their view, cultural and competitive similarities would be more important than differences, meaning that the same product could be sold the same way in many different markets, and with much lower marketing costs. They believed, in short, that Parker Pen would provide classic test of global marketing theory.
Parker's then president, James Peterson also believed that global marketing would be crucial to the survival of the faltering company. The company's weaknesses had been obscured for years by strong overseas sales and a weak U. S. dollar. At home, not only were competitors introducing mass-marketed, disposal pens, but even as Parker attempted to guard its reputation for quality, the company was losing its share of the domestic expensive-pen market to A. T. Cross Company and Sheaffer Eaton. Furthermore, Parker's manufacturing process was inefficient. New-product development had been neglected, and advertising worldwide, which had been left to local marketers, was handled by more than forty different agencies. Profits were plunging, and most of the profits were generated by Manpower Temporary Services, a subsidiary of Parker Pen.
Peterson's first move was to streamlin Parkers' operations by cutting the payroll by half, reducing the product line from 500 different writing instruments to 100, and spending million to upgrade Parker's manufacturing facilities. Then Peterson and his marketing team embarked on two-pronged program with far-reaching consequences. They began production of cheap pens that could compete in the under- market, and they standardized everything associated with Parker products under a "global umbrella". From then on, all packaging and point-of-sale display materials would use the same striking block motif. The advertising budget would be centralized, and one advertising agency would handle accounts worldwide. A single theme-"Make your mark with a Parker"-would be used for all products and in all markets, and advertisements would feature the same graphics, photography, and typefaces; only the languages of the copy would vary.In addition, advertising would spotlight Parker's new, inexpensive products instead of the quality pens that were the company's trademark.
These two decisions-to produce cheap pens and to use uniform marketing strategy for all Parker products-were eventually considered ma jor blunders by many inside Parker Pen. Long-time Parker Pen employees objected that the lower-quality pens ran counter to Parker's carefully nurtured status image. Parker's European manager argued that advertising should take into account the differences among markets.
However, Parker's new management insisted that the company's future lay in high-tech. High-volume production of cheap pens for a global market, and implementation of new strategy proceeded. At first, sales of the new roller-ball pen and other writing instruments increased Then, just as demand was picking up, the automated production line began to shut down repeatedly. Parker employees were forced to return to the assembly lines to take over for the malfunctioning systems. The defect rate soared and before the problems were resolved, the marketing division set aside strategies and forecasts and sold whatever products were available.
A few months later, the global advertising campaign was launched. In accordance with the "one product, one market" policy advertisements for different markets had identical layout, illustrations, and text: only the languages in which they were written were different. Because the theme was so general, the advertisements appealed to no one in particular, especially not to those buyers who viewed writing instruments as status symbols. Resentment against the global marketing strategy mounted within the company, and when the failure of the advertising campaign could no longer be ignored, Peterson resigned, followed by his hand-picked marketing executives. The pen business suffered a , 000 loss and was purchased in 1986 by a group of Parker's international managers and a British venture capital company.
Now based in Newhaven, England, Parker Pen Ltd. is a profitable company, with 2000 pretax profits of 8 million. Although the reorganized firm used the now-functioning Wisconsin plant and owes some of its success to the greater operating efficiency the former management brought about, the new owners have instituted several policies of their own. Parker's inexpensive pens receive less emphasis in advertising, and plans to produce disposable pens were dropped.The company is working to restore its reputation for quality and reliability. It intends to add perceived value, rather than volume, to its products. In addition except for the marketing of the company's Duofold Centennial model, a 18-carat goldnib fountain pen targeted to a tiny market segment, global advertising has been abandoned.
Before the practice of its global marketing strategy, Parker Pen Company ____
A.was an international company with an increasingly large market share B.had not been doing well and was at a critical moment C.had been eager to push up sales in the international market D.enjoyed satisfactory sale performances and was ready for the new move正确答案B
