【正文】 a master global brand. We saw how even in the industries hardest hit by lowcost imports, such as TVs, a large majority of consumers would deliberately pay a premium for distinct global brands, such as Sony and Philips. We plemented the master global brand by some welldefined subbrands that clearly supported the positioning of the bipolar products. Str229。M‘s, they have bee a growing business, with sales doubling every year. From colored bits of candy to hockey sticks and plex plastics, lots of items are now being tailored to individual desires. This is part of a continuing industrial evolution – from mass production to mass customization. The result is the mass market of one. And the Web is helping to bring it about. Companies are wooing shoppers with a digital version of the classic Burger King eon: ―Have it your way‖. The appeal is extending from retail stores into the labs of the world‘s biggest manufacturers. Procter amp。s emerging middle class are already particularly notable. First, it will be unusually young pared with that of most developed markets, whose highest earners tend to be middle aged. Since higherpaying jobs, on average, require a higher level of education and training than what older generations have obtained, the Chinese government currently makes substantial investments in higher education for the younger cohorts, meaning that the country39。s cities for higherpaying jobs. These working consumers, once the country39。 1 PARTICIPANT HANDBOOK MARKETING STRATEGY July 20xx Rick A. deWerk This course is meant for students who have some training in marketing, or work experience in marketing or a marketing related subject. It deals with specific application areas and new challenges that face today’s marketers. 2 CONTENTS Introduction The new consumer The Middle Kingdom’s New Middle Class The value of China’s emerging Middle Class A mass market of one Escaping the middlemarket trap: Electrolux The Business to Business consumer China Enter Marketing of Services Managing our way to higher service productivity Club Med ECommerce Getting real about virtual merce Marketing Strategy The Swatch case IKEA The Marketing Mix Strategies How WalMart’s TV prices crushed rivals Boosting return on munication investments Confronting proliferation: Carlsberg Beer 3 INTRODUCTION The scope of today‘s marketing challenge is breathtaking. There are a number of reasons for that: globalization, resulting in fiercer, worldwide petition。s poorest, will steadily climb the ine ladder, creating a new and massive middle class. Because they are now still relatively poor, serving them will naturally require a pany to change its strategy significantly. Early movers, such as CocaCola and Pamp。s wealthiest consumers will be from 25 to 44 years old. Second, the urban middle class will dwarf the current urbanaffluent segment in both size and total spending power. From 20xx onward we will see some distinct subsegments among the affluent—including the mass and globalaffluent categories—but they will still total only 40 million households by 2025, accounting for just 11 percent of all urban dwellers. They latter will remain a critical market for some panies. These uppertier households already account for 25 percent of Chinese household savings and will continue to control the bulk of the nation39。 Gamble lets shoppers design everything from eye moisturizer to liquid foundation makeup at its site. Engineers at Rockwell Collins use virtual online labs to tailor materials for fighterpilo9t visors. And Yankee Candle woos buyers with brightlyhued labels and 8 exotic scents they can mix and match for the right candle. Mass customisation will grow, being a necessity in some industries. Companies are approaching this new world with caution, and with good reason: The Web can find plenty of customers for madetoorder products, but retooling a factory to spit out thousands of faultless variations on a theme is no easy job. Nike for example spent six months working with suppliers in Asia to rejigger its manufacturing for custommade sneakers. Other panies, aware of the plications, start off with reduced offerings. Still, recipes for success are emerging. Industries such as clothing that can charge a premium for quality are a natural. Others, like golf clubs and hockey sticks, that deal with simple shapes also have an edge. For businesses rooted in databases, from creditcard panies to mortgage lenders, the race to the mass market of one is well under way. Customization not only expands markets but also allows businesses to charge more. Shoppers who spend hours in changing rooms hunting for the elusive fit are happy to pay triple the price of the offtherack products. Suppliers have to charge more to cover the higher cost of making customized clothing, but are hoping that as the custom operation picks up steam, highercapacity manufacturing processes will lower the cost per unit, boosting profit on the premium line. Financial services are naturals for customisation too. Creditcard and mortgage panies already traffic in digital information, so they can whip up loans to fit a wide range of specific risk profiles – and charge personalized prices as well. The payoff, though, can stretch beyond sales. Masterfoods USA has picked up marketing ideas and is now testing new colors in some retail markets. For Xmas, along with the famous ―M‖ on its candies, it will print messages such as ―Ho Ho Ho‖ . Want to see your name on a batch of aquagreen Mamp。berg describes both the nature of market polarization in the appliance sector and t