Answers of questions asked in case study Parker Pen Company in book International Marketing by Michael R. Czinkota & Iikka A. Ronkainen

1. Q1)Was the proposed globalization strategy for Parker Pen flawed or merely plagued by
implementation challenges? Marks 10
 It was both.
 Parker didn't realize that the pen industry needed separate segmentation due to
differences in local consumer preferences.
 The promotional campaign could have just been bad, which compounds risk, since all
your marketing eggs are in one basket. Parker had declining market share due to low
cost disposables and other premium pen companies entering the market, like Cross
and Montblanc.
 Parker attempt to make a lower cost pen, which alienated their current core
customers and diluted their brand further.
 Companies falling on hard times, should never try a globalization strategy. It requires
too much brand strength and financial health to do so.
 Lack of marketing mix i.e Usage 4p’s for consistency and uniformity was not there.
 Internal conflicts : the subsidiaries began to turn against the concept of globalization
 Self-Reference Criterion (SRC). While crafting the new strategy for PARKER Mr.
Peterson was biased due to his SRC, which mainly came from his vast work
experience on global marketing concept. He totally ignored the existing situation of
PARKER and forced the company to change its strategy ignoring the requirement of
market.
 Firing of Successful Managers. Mr. Peterson and his team fired many of veteran
managers of the company. In some case a move was greeted with dismay by the
employees within the company, which ultimately affected the productivity of the
company.
 Rigid Centralization. Many company involved in global marketing do not rigidly
centralized all their marketing effort due to the huge variety in the culture of
different region. In some cases companies made little or few adjustments in their
standardize global effort to meet the requirements of different environment. But
Mr. Peterson and his strategy had the rigidity in following centralized packaging,
pricing, and promotional materials. This rigidity was not accepted by the customers
of different culture.
 Use of Faulty Technology in Production Plant. Repeated mechanical fault caused
disturbance in the productivity of the automated production plant. This is another
reason for the failure of new strategy.

2. Question 2) what marketing miscalculations were made by the advocates of the
globalization effort at ParkerPen?
 The entire marketing mix (promotion, product, price, and place) must be carefully
coordinated for greatest success. This is so because, the product designs, the price,
the shape and colour of its package and others within the chain communicate
something to buyers. Thus, for consistency and uniformity all these aspects of
marketing should be integrated. However, integration of marketing is not about
neglecting local values and customs, it is not about one size fit all, but is about
making use of the traditional four Ps for consistency and uniformity.
 Integration of marketing communication activities can avoid confusion and
disaffection in the minds of consumers and buyers, offering a comfortable identity to
customers and staff. Agencies who support the marketing communication process
can take a more holistic and thus strategic stance to their client's business,
concentrating on strategic development rather than separate agendas to get a
strategic fit. .This is the primary function of e-marketing communication in
integrated marketing communication.
 Parker used the ideas from its headquarters to create and market its product
worldwide, and employed its US expatriates in the overseas divisions. This is
dangerous because they are not familiar with global market situation and their
judgement may be the result of Self-Reference Criterion (Cateora, 1997). For
example: selected name did not have the relevant association in all countries, and
the common pricing and advertising are ineffective. In order to be effective, Parker
must adopt the ‘corporate citizenship’ approach - it must become an insider in all
markets.
 Parker utilized the new product development strategy and concentrated on
cost/price strategy instead of using the market penetration and development
strategy (Lehmann and Winer, 1994). Parker shifted its focus from a single-brand,
high-end market to go after the low-end market because it wants more profits. This
has caused a conflicting brand image because Parker Pen is an expensive status
symbol, but suddenly it sells cheap disposable pen. The company also decreased its
advertising and promotion efforts without considering the competitors’ reaction.
Parker must realize that it does not sell a $1500 pen, but it sells an image (status
symbol). Therefore, the differentiation on brand identity is essential.
 Miscalculatedthe productpolicy
Strategiesof anorganizationshouldwell be able todetail themselvesasperthe needsof the
environmentwhile planningforthe future.Today,businessenvironmenthasincreasingly
become more turbulent,chaoticandchallengingthaneverbefore.Tosurvive,itisvital that
a firmcan dosomethingbetterthanitscompetitors.Globalisationhasnotonlyalteredthe
nature and the intensityof competitionbuthashadto dictate andshape organisationsin
termsof whatconsumerswants,how andwhentheywantit and whattheyare preparedto
pay forit.

3.  Miscalculationof targetsegment
However,withitsglobal strategytheyneglectedsegmentingthe marketusingbehavioural
and psychographiccharacteristics.The marketswere segmentednotinrelationtoproduct
variables,suchasusage rates,and featuresdesiredbythe local markets.The management
oughtto have place productson a continuumor environmental sensitivity.
 Competitorsmiscalculation
Question 3 )
 The benefits of being acquired by a major global brand include reduced cost for
infrastructure and personnel, as Parker Pen could use the existing infrastructure and
maybe share staff for some tasks like accounting and marketing. Increased market
share, lower cost of operation and production, high competitiveness and industry
positioning, financial leverage and improved profitability. The possibility of financial
support and synergy between companies.
 Major recognition as a truly organization, an enhanced image, credibility and
marketing.
 Economiesof scale
 Increasednetworkingandcustomerdatabase
 More diversifiedstreamand
 Protectionof company’simage incase of external andinternal conflicts.
 Barriersto entrywill be less
Drawbacks
 Brand unclearness(Gillette andparker)
 Restrictionsfromthe parentcompanyintermsof decisionmaking,operationandrules
whichmightbecome andobligation
 Loose owninfluence
 Internal conflictsbetweenthe employeesonmanagementlevel.
Q4 ) Being a CEO , what the “DASH “ you would do ??
 Continuing with the Previous Decentralized Strategy with Gradual Expansion. Instead
of having a sudden change in the overall strategy Mr. Peterson could adopt global
marketing concept slowly and gradually. This would certainly help the customers to
be mentally ready to accept standardize products and promotional campaign. This
would also keep the image of the company unhurt.
 Adopting Global Marketing Strategy with Lack of Rigidity and Required Customization.
This could be another option for Mr. Peterson and his team. Like many other globalize
company they could adopt standardization in their marketing effort with required
customization. Mr. Peterson would have been set a general guideline / standardize

4. marketing effort for the agencies and subsidiaries around the world and they should
have been allowed to customize those basing on the local market requirement.
 Lower End Market may be Pursued with Different Brand Names the Products. In this
strategy PARKER would continue to sell the upper end products in their generic brand
name PARKER to keep up the tradition and image of the company. At the same time
company could pursue the lower end market with different brand name products
other then PARKER. Initially this strategy might face some difficulties to penetrate the
market but if handled with care it could earn the satisfaction of the targeted segment.
And probably it would enhance the company’s success in the writing instrument
further.