In September 2015, the marketing manager of the Advanced Surgical Solutions Division at Medtronic plc (Medtronic), Kingdom of Saudi Arabia (KSA), weighs his options as to how best to respond to yet another instance of “grey marketing,” that is, the unauthorized distribution of genuine branded products. The rampant parallel importation of one of Medtronics’ best-selling products—LigaSure Vessel Sealing instruments—has resulted in a much smaller-than-usual order from one of Medtronics’ most important customers, the King Faisal Specialist Hospital & Research Center. Medtronics' marketing manager must find a way to respond appropriately to the customer without risking the ire of his sole authorized distributor in KSA.
In September 2015, the marketing manager of the Advanced Surgical Solutions Division at Medtronic plc (Medtronic), Kingdom of Saudi Arabia (KSA), weighs his options as to how best to respond to yet another instance of "grey marketing," that is, the unauthorized distribution of genuine branded products. The rampant parallel importation of one of Medtronics' best-selling products-LigaSure Vessel Sealing instruments-has resulted in a much smaller-than-usual order from one of Medtronics' most important customers, the King Faisal Specialist Hospital & Research Center. Medtronics' marketing manager must find a way to respond appropriately to the customer without risking the ire of his sole authorized distributor in KSA.
In 2014, Zheng Shan Tea Company, a Chinese tea producer and exporter, noticed an increase in the consumption of black tea, particularly among mainstream, middle-class consumers in China. The company wondered how it could increase its sales and leverage the growing popularity of black tea. The company's brand director recognized the potential opportunities, but realized that she had two significant challenges. First, because the company had historically been positioned as a premium brand, targeted at high-income consumers, it risked diluting the brand by making its tea more attractive to the mass market. Second, the Chinese government, as part of its crackdown on corruption, discouraged the purchase and consumption of luxury goods. The brand director needed to decide what action to take to realize the company's goal of increasing sales.