3. If advertising cannot be standardized, what advertising programs should be developed in each country? Nove Ltd is a large concern located in Hong Kong that manufactures a line of household appliances in which sales expansion in the past has been very rapid. Actual manufacturing takes place in mainland China. Since Hong Kong is a Special Administrative Region (SAR) of China, the export takes place from Hong Kong while the country of origin of the products exported is China.

For certain new products the increase in sales has been so fast that production capacity could not keep up with demand. For one of the new products – electric (dry)

shavers – management foresaw and provided for more than normal commercial expansion. Production capacity for these articles has been enlarged to the extent that even in the face of a rapid sales growth, a sufficient number of dry shavers could be manufactured. In view of the enlarged production facilities, more effective sales effort became necessary. Total 2003 sales amounted to 7 million shavers. The 2004 sales target was set at 7.5 million pieces.

In order to put the planning indicated above into effect, a more intensive marketing communication campaign was considered desirable. In countries A, B, and C (countries so designated for purposes of disguise)

particularly favorable results were expected from a stepped-up advertising campaign. The approved advertising budget for these countries was therefore separated from the normal sales budget and determined individually. The company’s advertising manager felt that for the most effective results, the advertising budget should at least be doubled. In view of the enormous amounts planned for advertising, the management suggested a preliminary investigation in the countries concerned to ascertain why dry shavers in general, and the company’s own brand, ‘Nover,’ in particular, were purchased. Nove intended to obtain arguments that might best be used in its advertising and get some tips for sales promotion.