Abstract

Migros is a grocery retailer in Switzerland, organized as a co-op with over one million Swiss households as members. Migros also operates a travel agency, gas stations, a book and record club, and other business. In the last decade, Migros has tried to expand into neighboring countries, but the venture in Austria failed and the presence in France and Germany remained small. The case asks why Migros has not been more successful abroad, especially in Austria, given the seemingly quite similar cultural environment and language (German). A key issue is the Migros brand strategy, both in the domestic market and abroad. Cultural questions are important since behavior and food preferences vary significantly. The case also raises the question what a successful enterprise can do when it seemingly cannot grow.

Teaching
This case works well for a discussion of culture and language issues, an introduction to differences in shopping behavior and the importance of brands, and sensitizing students to the fact that countries may appear similar in culture and language but, in fact, pose challenges to marketers. The case is appropriate for an international marketing course and other international business courses that wish to focus on marketing communication and culture. For advanced business language courses, the case is also available in German translation. Most students will require some background on countries involved (Switzerland, Austria, perhaps Germany and France), including geography, demographics, and national culture. Students can research these topics as part of the case preparation. Class discussion usually revolves around the Migros brand, the importance of name recognition, as well as the extensive use of the Migros house brand. Most students take it for granted that Migros can continue to grow and that the enterprise can and should expand outside of Switzerland, when Migros may, in fact, find growth of its existing businesses quite difficult. Depending on the class, a discussion of the European Union and related cultural issues can be very fruitful.
Case number:
A12-05-0002
Subject:
Marketing
Year:
Setting:
Switzerland
Length:
6 pages
Source:
Library