Case 5-1, 6-1 (MKT 201)

MKT 201
Assessment III
Case study 5-1 ; 6-1
Semester III (Sep 2 – Dec 17)
Viktoriia Lebedieva

Case 5-1
America’s Cuban Conundrum : The Assignment
1) What was the key issue that prompted the EU to take the Helms-Burton dispute to the WTO?

The key issue that prompted the EU to take the Helms-Burton dispute to the WTO is the theory that law argues against the governments’ authority and the principle of International Law. Another words, in a environment where EU and US had reach advanced stages of economic development, any practice or policy that restrains free trade (in theory) should be consider illegal. However US argued that Helms-Burton legislation objective is to promote “democracy” discouraging foreign investment in Cuba through the threat of lawsuits and the imposition of travel restrictions.

2) Who benefits the most from an embargo of this type? Who suffers?

The embargo only benefits the United States government to a limited extent. Because of the Act, American supplies only reach Cuba through non-United States distributors and even smugglers to the disadvantage of the American companies (Toledo, 2011). But on the other hand, Cuba is obliged to pay cash for all imported goods because of prohibition of credits.

3) In light of the overtures U.S. President Barack Obama has made to Raul Castro, what is likelihood that the U.S. and Cuba will resume diplomatic and trade relations during the Obama administration?

It seems that the best resolution to the trade situation between the United States and Cuba would be to end the embargo which would help the Cuban people and American profits. Cuba is a very poor country and repaying of loans is almost impossible. By being able to negotiate Cuba and the United States could come to an agreement that would benefit both countries.

Case 6-1
Information Technology Is the Key to Success for Clicks : The Assignment
1) The Clicks ClubCard loyalty program is regarded as one of the drivers of growth at Clicks. Why you think this program has been so successful? Explain.

ClickClub loyalty program is not just like discount card for members\users. This is the program which was highly constructed and developed with time. The production of the company was defined for mid- and high- costumer spenders. The aim of the company is provide a good quality of care for people who really want to feel and look better. They provide a big list of advantages. For instance, shoppers are getting point with every purchasing, and then can get some bonus, as getting some of clicks products for free. It’s called “cash-back”. And that’s the way how they (company) can gets the quick attention. Its always nice and pleasure to use good service, which sometimes will encourage you to buy more, as probably even use to buy just from that particular company. People always want to get something for free, and that’s kind of difficult in our nowadays. Clicks also had much more examples of advantages, they provided to their costumers.

2) Why you think Clicks has started to adapt its merchandise range to appeal to consumers of the growing black middle-class market in South Africa?

I am not sure, but in my opinion in this case it takes to account just the mid- class, as mostly African’s nation is poor. So, the answer is their enticing bonuses. As I mentioned in question 1, people always wants to get something for free, especially if they don’t really have that opportunity to afford that much, as they want, or they need.

3) Suggest practical marketing strategies that would encourage ClubCard members to make additional trips to Clicks stores.

1. Person-to-person advertising (To present some particular products in any public places. It can be new product or the old one, but which was developed).
2. To create marketing program, as try to involve more and more people, by register them, as freelancer worker. Moreover they will use Click’s products, but they also will do some free add for your company, distribute your product and include in a list of users and more people. A good example of the same marketing strategy is Russian line of cosmetics – Faberlic.