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4 placement
5 endorsement
i) the introduction of a product to the market
j) the length of time people continue to buy a
product
Complete these sentences with the word partnerships from Exercise 1.
1 The creation of Best Cola, Best Air, Best Rail and Best Bride is an example of
2 Consumers who always buy Levi's when they need a new pair of jeans are showing
3 Not enough people recognize our logo; we need to spend a lot more on raising ,
4 David Beckham advertising Vodafone is an example of
5 A consists of introduction, growth, maturity and decline.
6 The use of BMW cars and Nokia phones in James Bond films are examples of,
Make sentences of your own using the word partnerships in Exercise 1.
Reading
Outsourcing production
Why do some companies make luxury products abroad rather than at
home?
Read the article and answer these questions.
1 Which brands are mentioned? Do you know which country each is from?
2 Which companies make all of their products in their own country?
Made in Europe
By Jo Johnson, Fred Kapner and Richard McGregor
Almost every fashion label outside
the top superluxury brands Is
either already manufacturing in
Asia or thinking of it. Coach, the
US leather goods maker, is a
classic example. Олег the past five
rears, it has lifted all its gross mar-
gins by manufacturing solely in
lowcost markets. In March 2002
it closed its factory In Lares.
Puerto Rico, it* last company
owned plant, and outsources all Its
products.
Burberry has many Asian licens-
ing arrangements. In 2000 it de-
cided to renew Sanyo's Japanese
licence for ten yean. This means
that almost half of Bnrberry's
sales at retail value will continue
to be produced under licence in
Asia. At the same time how-
ever, Japanese consumers prefer
the group's Europeanmade
products.
Sanyo is now reacting to this
demand for a snob alternative
to the Burberry products made
in its factories across Asia
by opening a flagship store in
Tokyo's Ginza, where it sells
Burberry products imported
from Europe.
In interviews with the FT, many
executives say the top luxury
brands will continue to be seen,
particulary in Asia, as European.
Domeniro De Sole of Gucci
says: 'The Asian consumer
really does believe whether
it's true or notthat luxury
comes from Europe and must
be made there to be the best.'
Serge Weinberg, Chief
Executive of Pinault
Pile temps Red о lite, which
controls Gucci, says it will
not move Gucci's production
offshore. Yet some in the
industry recognise that
change may be round the
corner even for the super
luxury brands. Patrlzlo
BertelH, Chief Executive
of Prada, says:The "Made in
Italy" label is important but
what we are really offering is
a style, and style is an
expression of culture.' He
therefore recognizes that
quality fashion items may
not always need to be
produced in Italy.
Amitava Chattolpadhyay,
Professor of Marketing at
Insead, the business school,
says: 'A brand is a set of
associations in the mind of
the consumer and one of
these is the country of origin.
For luxury goods.the role of
the brand is crucial. To
damage it is a cardinal sin
and no brand manager will
want to get the balance
between manufacturing
location and the brand image
wrong.'
From the Financial rimes
FINANCIAL TIMES
World business newspaper.
Which of these statements are true? Correct the false ones.
1 Coach no longer has a factory in Puerto Rico.
2 Coach, like many other companies, is outsourcing its products to reduce costs.
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