The company. Companies and products. Describing companies

What is the brand?

A brand is a special trade mark, sign, symbol, design of the product that distinguishes it from other products. Products can have sub-brands. People have some beliefs and perceptions about a particular product, that is they have the brand image.

Consumers get used to some brands, and prefer to buy them. Some people drink only Nescafe, prefer mayonnaise produced by Moscow fat-producing plant (MZHK) and chocolate of Krasny Oktyabr factory and so on. In this case we can speak about brand loyalty, that is commitment to a particular brand, which people regularly buy.

Some brands have names of people. Tea brand Dilmah is composed of the parts of names Dilhan and Malik, sons of the tea producer.

Some brands have mistakes in their names. Brand of vegetable oil is called "Zolotaya semechka", but according to the rules of the Russian language, it should be called "Zolotoye semechko".

It takes up to ten years to create a brand in the West. In Russia it can only take two years. It is known that 80 to 90% of new brands fail within their first six months.

If a company gives the name of the brand to its other products it's called brand-stretching. By putting their familiar trademarks on attractive and fashionable new products, companies can both generate additional revenue and increase brand-awareness. So there is Pepsi Maxwear, Camel watches and Cadberry jewellery. Brand-stretching is not always successful.

A brand like Coca-Cola has been around a long time, and dominates the fizzy drink market in almost every country, outselling local brands. One of the exceptions is Scotland, and their marketing specialists are trying to find out why this is.

One of the possible solutions is that people in Scotland are more conservative and keep to their traditions.

One of the most successful brands in the world is the Barbie. Created in 1959, it targeted girls who wanted to have dolls which were like young women. Its unique selling proposition is that Barbie looks like a young woman, not a baby. Barbie has had seventy five careers — from astronaut to presidential candidate. In 1961 Ken, the man in Barbie's life, was introduced. She has got little sisters and friends from different ethnic groups. Now there are 15,000 different items for Barbie. Costume variations and brand-stretching have been the key to her continued popularity. Her life cycle never ends. One Barbie is bought every two seconds.

VOCABULARY

to distinguish — отличать, проводить различие

brand image — имидж торговой марки

perception — восприятие

brand loyalty — лояльное отношение к торговой марке

commitment — приверженность

brand-stretching — «расширение» торговой марки

brand awareness — осведомленность, информированность о торговой марке

fizzy drink — шипучий напиток

to outsell — продаваться больше / лучше

exception — исключение

unique selling proposition (USP) — уникальное торговое предложение

item — здесь: вид товара, товар, изделие

Make — модель, марка, тип, сорт, производство. Чаще используется для обозначения производящей фирмы, чем самого продукта. Как правило, этот продукт предполагает сборку, как, например, автомобиль.

Brand — торговая марка.

Trademark — «торговая марка» — это слово или символ, которые производитель использует, чтобы отличить продукт или ряд продуктов от других. Торговая марка обычно регистрируется и защищается законом.

Logo — это символ, эмблема, рисунок или иное изображение, особым образом написанное название компании, которое она использует на своих продуктах, в рекламе, на конвертах, фирменной бумаге и т. д.

Copyright — авторское право. Компании и отдельные изобретатели получают патенты на изобретения. Парижская конвенция защиты промышленной собственности устанавливает минимальные стандарты и признана в 100 странах. Авторское право может быть получено на литературные, музыкальные и художественные произведения.

Franchising

Franchising means granting a formal right to the manufacturer, wholesaler or retailer to produce or to sell the company's goods or services in a special area for a specified period of time. This way of doing business is widely used in the market economy. 40% of all sales in the USA go through franchising which makes $1 billion as annual volume of sales. These figures are presented by International Franchising Association. Franchising in Great Britain is supported by government. The banks give loans to businessmen, and the government guarantees 80% of the loan.

Purchase of a franchise is a simple way of starting business. Reliable scheme of doing business, a promoted brand, product of high quality — all these things increase chances of a beginning businessman for success. For a stable company it is a good way of expanding markets. These are great advantages of franchising.

According to Russian Franchising Association, the number of franchises in Russia does not exceed two dozen. In other words, it is not developed in our country.

History of franchising in Russia dates back to 1993, when Baskin Robbins sold the first franchise in our country. Later, some Russian franchises were sold, among them a chain of shoe stores "Ekonika", fast food "Rostics", "Teremok", "Russkiye bliny", "Niam-Niam", filling stations LUKoil, TNK. But still we can't say that franchising is highly developed in Russia. Legal, administrative and financial problems are in the way of its development. Our laws don't operate the notion "franchising". One of the main things in the process of selling franchise is transfer of a brand name. According to Russian laws, brand name can't be transferred. Another serious problem is responsibility of subsidiary company. For example, if franchisee in Siberia violates standards of franchisor in Moscow, the consumer has a right to make a claim against low quality of goods or services. Open joint-stock company LUKoil which sells franchises for setting up filling stations, has special departments in the areas where its franchises operate. In order to develop this kind of business laws on franchising should be passed. Nowadays many officials in Russia don't know what franchising is.

VOCABULARY

franchise — франшиза— лицензия, выдаваемая производителю, сбытовику, торговцу, которая позволяет производить или продавать товар или услуги компании, используя торговую марку компании

franchisee — франчайзи (покупатель лицензии)

franchisor — франчайзер (продавец лицензии)

wholesaler — оптовый торговец

retailer — розничный торговец

specified — конкретный

volume of sales — объем продаж

purchase — покупка, приобретение

reliable — надежный

promoted — здесь: раскрученный

to expand — расширять(ся), развивать(ся)

notion — понятие

transfer — передача

subsidiary company — дочерняя компания to violate — нарушать claim — претензия

open joint-stock company — открытое акционерное общество

Business Etiquette

The turn of the 20th century saw great interest in business etiquette in the USA. It can be surprising, but in this era of take-out foods and dress-down Fridays, etiquette is becoming very important. There are lots of signs of it. First of all, the bookstores are filled with different books on multicultural ways of doing business, on e-mail manners, table manners and more. Colleges and universities are giving their graduates a competitive edge in the job market, offering special courses. Businesses are spending hundreds of thousands of dollars for seminars and workshops with such names as "Customs and Protocol for Doing Business in the Global Marketplace", "Business Basics for Professional Polish" An etiquette expert Dorothea Johnson tells the story of the businessman who came to her for help after he was not employed by a big corporation. At a lunch meeting with a senior executive in the company, he sat down and immediately started eating the salad in front of him. He looked up to see his boss, who hadn't picked up his fork yet, and was staring at him. "I knew right then they were going to send me out," he said. If he knew the manners, he would have known to wait until his host started eating.

The recruiters do not offer jobs to candidates who salt their food before tasting, because it shows a tendency toward hasty decision making, or to those who order very expensive food at the restaurants.

Today's parents are realizing that while good manners will help their children get along in life, they can't teach them. Etiquette hasn't been a priority during the last two decades. Even if parents feel competent to teach manners, they may not have time. If family mealtimes are a thing of the past, when are children going to learn not to butter all their bread at once, or, more important, how to hold polite dinner-table conversation? Top corporations hire specialists to teach "client development skills", not manners, which could include anything from how to place a napkin to how to present a business card to a Japanese businessman.

The important thing to remember, though, is that good manners are more than a code of behavior. They can make life easier. It's methodology by which people can get along with each other.

VOCABULARY

to dress-down — одеваться просто (в американских фирмах в пятницу можно приходить на работу в джинсах и без галстука)

competition — конкуренция

to compete — конкурировать

competitive — конкурентоспособный competitive prices — конкурентоспособные цены competitive edge — конкурентное преимущество business — здесь: компания workshop — практическое занятие to employ — нанимать на работу

senior executive — руководитель, ответственный сотрудник

host — хозяин

recruiter — специалист по отбору кадров, фирма по подбору кадров

to get along — здесь: преуспевать, делать успехи

a priority — приоритет

to hire — нанимать, брать напрокат

to employ — нанимать на работу

employer — работодатель

employee — работник

employment — занятость

unemployment — безработица

Globalization

Globalization is the buzz word of our time. In the last two decades, the amount of money and goods moving between the countries has been rising steadily. At the same time, trade barriers across the world have been lowered.

It is becoming clear now that power in the world shifted from individual governments to the markets. In theory, governments are free to set their own economic policies, in practice they must conform to a global economic model. The crises of "tigers" in the Far East some years ago showed that financial markets control national economies.

The trend towards globalization began in the early 70s, when the system of fixed exchange rates, set up after World War II, stopped functioning. This meant that the value of currencies would now be determined by the markets instead of individual governments. By 1990, nearly all world's major economies had got rid of restrictions on how much money could be moved in and out of their countries.

Other factors contributing to the rise of globalization are new communications technologies, and better transportation systems. These let companies grow into multinationals — producing goods on one side of the planet and selling them on the other.

But adjusting to this new "economic order" Is rather difficult. In the developed world, and in particular the European Union, globalization is facing widespread resistance. Critics complain that, with out the protection of trade barriers, workers in poor countries are low-paid and exploited, and wages of workers in rich countries are falling, especially in labour-intensive industries.

But how close are we to a truly global economy? For the losers, probably too close. But in terms of real economic, integration, there is a long way to go. A global economy would mean complete freedom of movement of goods and services, capital and labour. Yet, even ignoring the tariffs and other restrictions still in place, cross-border trade is very small compared to the volume of goods and services traded within countries. Foreign investment is also extremely small, a little more than five per cent of the developed world's domestic investments. But what is really holding globalization back is the lack of labour mobility. Labour markets remain mostly national, even in the European Union, where people can live and work in any country of the European Union.

VOCABULARY

buzz word — модное слово

amount — объем

steadily — устойчиво

to conform — соответствовать

financial market — финансовый рынок

exchange rate — курс обмена

currency — валюта

restriction — ограничение

to contribute — способствовать, делать вклад

to adjust — регулировать, приводить в соответствие

protection — защита

labour-intensive — трудоемкий

loser — проигравший, потерпевший поражение

tariff — тариф

mobility — мобильность

Marketing

Marketing can be defined as human activity which is directed at satisfying needs and wants by creating and exchanging goods or services. The marketing concept has replaced the selling concept. The "selling concept" means that consumers have to be persuaded by selling techniques to buy non-essential goods and services. The "marketing concept", on the contrary, means that the producer should produce the products which the customers need.

Marketing can be approached in terms of marketing mix. Its components are four Ps — product, price, place, promotion, that is selling the right product, at the right price, through the right channels, with the right support and communication.

Let's consider the case of the company "Harley-Davidson", the company in the USA which produced bikes. For a number of years the company had serious problems. Its profits decreased, and the company was facing a possibility of bankruptcy. In its operation the company was orienting to a rather narrow market, that is young people in "black leather jackets".

In order to survive, the company had to use the main principles of marketing, 1, Determine the customer groups or segments. 2. Determine their needs. 3. Position the product in a proper way. While the company was trying to determine a new group of customers, it identified a numerous group of babyboomers, born after World War II. At that time they were in their forties. The second stage of this work was determination if these rather grown- up and conservative people could become buyer of bikes. The company studied this group and the features of its buying behaviour and came to а conclusion that it was possible. These people were experiencing the crisis typical for people of their age, and they had to get new opportunities, new experience and relaxation.

The company decided to launch a new model and position it in such a way it could meet the needs of the target group. The new model was meant for top-end, or upmarket (Am. upscale) instead of mid-range market. The motorcycle was made large and reliable. The company realised that new buyers would not repair the motorcycle themselves, so it used a new motor "V-twin". A lot was done to improve the image of the motorcycle. A shift was made from "hard metal" to a more soft variant. Such famous personalities as Kurt Russell and Elizabeth Tailor were advertising the new model. The company was successful. Its sales have risen, and its profit mar-gines have grown more than three times. Now the company is looking for new markets at home and internationally. It didn't suffer from foreign competition, as many automobile and electronic companies did. The company survived and began to prosper as it followed the principles of marketing.

Marketing has become a key factor in the success of western business. In the 20th century, marketing has played an increasingly larger role in determining company policy, influencing product development, pricing, methods of distribution, advertising and promotion techniques.

VOCABULARY

to define — определять

to satisfy a need — удовлетворять потребность

to persuade — убеждать

selling techniques — приемы и методы продаж

non-essential — не первой необходимости

marketing mix — комплекс маркетинга; смешанная система сбыта

market segment — сегмент рынка, т. е. группа покупателей со схожими потребностями и характеристиками

to launch — запускать (завод, продукт, торговую марку)

position the product — позиционировать товар, т. е. использовать рекламу и другие элементы комплекса маркетинга, чтобы сообщить о достоинствах товара

product positioning — позиционирование товара

buying behaviour — поведение покупателя

conclusion — вывод

to come to a conclusion — приходить к выводу

target group — целевая группа

top-end market / upmarket — рынок для элитарных покупателей (Am. upscale)

mid-range market — рынок для потребителей со средним доходом

bottom-end market / downmarket — рынок для (Am. downscale) потребителей с низким доходом

profit margirne — чистая прибыль в виде процентов от продаж

pricing — ценообразование

Advertising

Advertising is a message to promote a product, a service, or an idea. The purpose of most advertising is to sell products or services. Advertising plays a key role in the competition among businesses for the consumer's money. In many businesses, the volume of sales depends largely on the amount of advertising done.

Manufacturers advertise to persuade people to buy their products. Large firms also use advertising to create a favourable image of their company. The company can advertise in many ways depending on how much it wishes to spend, and the size and type of the target audience. If the company wants to enter the market or launch a new product, it often starts an advertising campaign.

Such campaigns are usually very successful because people learn about new products or services.

When South African Brewery (SAB) started producing beer "Zolotaya bochka" in Russia, it invested lots of money not only in production, but in advertising the product. The advertising campaign was aggressive, and as a result this brand of beer is among the most popular ones.

There are different ways of advertising:

• newspapers

• television

• direct mail

• radio

• magazines

• outdoor signs

• other ways (Transit advertisements, window displays, point-of-purshase displays, telephone directories and novelties).

Television is the chief medium used by advertisers. In the USA 100 largest advertisers spend on average 75 per cent of their advertising budgets on television. Food companies spend about 80 per cent on television, and candy, snack, and soft drink companies spend about 85 per cent.

Adverising on TV is often criticised. People don't like it when programmes are interrupted every fifteen minutes. We know that the Duma passed a bill that would forbid running of commercials during television and radio programmes. In Russia TV advertising generates $300 million a year. Of course, advertising revenues are important, but there are international norms which recommend ad breaks every 45 minutes. These days outdoor advertising is popular in Moscow. Many people think it makes the city more beautiful. It is especially widely used by car manufacturers, clothing and telecommunications companies. Such advertising attracts wide audience and is cost-effective.

VOCABULARY

advertising' — реклама

message — послание

volume of sales — объем продаж

manufacturers — производители

favourable — благоприятный

target audience — целевая аудитория

to launch — запускать (завод, продукт)

advertising campaign — рекламная кампания

brewery — пивоваренный завод

transit advertisements — реклама в городском транспорте

window display — витрина

point-of-purshase display — выкладка на месте покупки

telephon directory — телефонный справочник

novelties — мелкие товары (календари, кружки, брелоки, майки) для подарков

medium — средство

on average — в среднем

candy — конфеты

snack — легкая еда

revenues — доходы

ad breaks = advertisement breaks — перерывы для рекламы

outdoor advertising — наружная реклама

cost-effective — эффективный

Banking

There are several ways in which consumers and businesses can use their savings or idle funds. They can deposit them in a commercial bank, they can take them to a savings bank or to a savings and loan association, or they can buy stocks and bonds.

They can also keep excess funds completely idle by holding their cash in a safe place.

Since there is competition for savings, the bank must offer an attractive rate of interest. The higher the rate, the less likely it will be that savers will bring funds to the bank because people will prefer a more profitable way to save. Besides being saving institutions, banks serve another vital function. They act as a market for money. People and businesses in need of money are willing to pay for the use of it, just as people pay rent for the use of a flat or for a car they need only for some time. Banks provide facilities for the movement of money. Businessmen borrow to expand their factories or stores, to increase their inventories and to buy machinery. They expand in the expectation that they will increase their profits. Businessmen must consider interest on loans as an added expense of any expansion.

Businessmen and consumers may postpone actions that require borrowed money when in their opinion the interest rate is too high.

There is another side to the bank's role in the economy. Since the prosperity of a bank is tied directly to the prosperity of the community in which it does business, bankers usually take an active interest in local development efforts to bring new industry to the area. They help and advise businessmen who are interested in setting up or expanding businesses. These businessmen are the biggest buyers of local government bonds. By buying these bonds they lend money for local improvements that will make their community a better place to live and to do business.

VOCABULARY

savings — сбережения

idle — незанятый, бездействующий

deposit, v — положить на хранение

deposit, n — вклад, взнос, депозит

loan — заем

stocks — акции, акционерный капитал (амер.); ценные

бумаги, облигации (англ.) bond — облигация excess, n — избыток, излишек excess, adj — избыточный, излишний competition — конкуренция rate of interest — процент (ссудный) profit — доход

profitable — доходный, прибыльный facilities — условия to borrow — брать в долг inventories — материальные запасы added expense — дополнительные расходы prosperity — процветание effort — усилие to lend — ссужать, давать в долг

The company. Companies and products. Describing companies

1. Describe a company using the following plan:

• when it was started or founded and who its founder was;

• who runs the company: who its chief executive is;

• what products it makes or what services it provides;

• its sales figures;

• how many people work for it: how many employees it has;

• where its headquarters are: where it is based;

• where its factories or plants are located (if it's a manufacturing company);

• how many branches or retail outlets (shops) it has (if it's a retail organisation);

t whether it sells business-to-business, or whether it's a retail organisation selling to consumers;

• whether it uses a franchising system, where retail outlets are managed by individual owners called franchisees who have a share in the profits made by their franchise.

VOCABULARY

to found — основывать

founder — основатель

chief executive — руководитель

sales figures — показатели продаж

branch — отделение

to sell business-to-business — продавать предприятиям

2. To which industry does each of these companies belong? Match the descriptions with the industries.

1) This company operates a chain of supermarkets.

2) This company provides power from nuclear power plants to other industries.

3) This company develops and sells drugs for a range of medical applications.

4) This company supplies cloth to clothing manufacturers.