NIGERIAN HOECHST LIMITED - CASE 15: INTERNATIONAL MARKETING ANALYSIS
Introduction: Is Hoechst Ready for International Marketing?
The time of this case is the early-1980s. Hoechst A.G. is a well established chemical and pharmaceutical manufacturer located in West Germany (Federal Republic of Germany prior to German unification). This paper is concerned primarily with the Pharmaceutical Division of the company. With respect to this case, it is somewhat off the point to question the readiness of Hoechst A.G. for international marketing, because the company, as of 1981:
Derived 65 percent of total revenues from sales outside of West Germany,
A roughly comparable of the total revenues of the Pharmaceutical Division were derived from sales outside of West Germany, and
The company operated production facilities for both chemicals and pharmaceuticals in countries other than West Germany
Obviously, therefore, Hoechst A.G. is ready for international marketing. More relevant issues are (a) which international market should be the company's next target and (b) which division (Chemicals or Pharmaceuticals) should be involved in such an expansion in international marketing. These issues also are moot in relation to this case, however, because the case data related only to (a) Hoechst operations in Nigeria and (b) operations of the Pharmaceutical Division in Nigeria. Hoechst has been in Nigeria since the 1950s as a marketer of chemical products, and the company has had production operations in Nigeria since the 1970s.
By the time-frame of this case, issues concerning the appropriateness of international marketing for the company, the division of the company involved in the planned expansion, and the country targeted for the marketing expansion had been settled. International marketing for the company was appropriate, the Pharmaceutical Division was the focus unit within the company, and Nigeria was the target country.