GLOBAL SIMILARITIES AND DIFFERENCES………...

• The development of the web, the spread of cable and satellite TV and global linking of telecommunication networks have led to convergence of lifestyles • Common needs have created global markets for standardized products CONSUMER BEHAVIOUR VS. CONSUMER BEHAVIOUR…………..

• Individualism(e.g. USA) vs. collectivism(e.g. Japan) • High(e.g. Russia) vs. low power distance(e.g. Nordic countries) • Masculine(e.g. Japan) vs. feminine(e.g. Nordic countries) • Weak(e.g. Jamaica) vs. strong uncertainty avoidance(e.g. Germany) • Long term vs. short term orientation • Indulgence vs. restraint MARKETING ADAPTATION…….…… • Product features, labeling, colors, materials, sales promotion, advertising media • Brand name, packaging, advertising execution, prices, advertising themes NO TO STANDARDIZATION ????..........

• Ignores differences in consumer needs, wants and usage patterns for products • Ignores differences in consumer response in marketing programs and activities • Ignores differences in brand and product development and the competitive environment • Ignores differences in legal environment • Ignore differences in marketing institutions 1



THE WHY AND THE HOW

The key to ‘glocalization’ was the use of

franchising

   By franchising to local people, the delivery and interpretation of a US brand culture are automatically translated by local people They aimed to create a set of items that tasted the same whether in Singapore, Spain or South Africa Thus local adaptation was the mantra 2

GLOCALIZATION KING !!!

  

BRAND PERCEPTION

McDonald’s allowed countries and regions to

customize their basic layout and menu staples

In China, corn replaces fries in happy meals. In India, the mutton-based Maharaja Mac replaces the beefy big Mac, and cottage cheese wraps and potato patties are for vegetarians The brand became a symbol

of American lifestyle representing modernity, convenience, enjoyment and escape

   Journey from an obscure Finnish

conglomerate to a cell-phone

powerhouse was possible only because of Glocalization It derived success from its broad strategic view of how to build a

global brand with international consumer base Strategy was-All price points,

all markets; thus sold products and services in all price ranges to different types of consumers all over the world   Nokia had an understanding of

what customers need, value and

can afford depending upon their geographical location and demographics It made sure its cheapest handsets were appealing and profitable in markets such as China, India and Latin America; also maintained its market leadership in challenging markets as Europe and United States where it launched high-end handsets with advanced features 3    Nokia understood how critical it was to have a finger on the pulse of countries and cultures With 16 different R&D factories, manufacturing plants in 10 countries, web sites in 7 counties and 650000 points of sale-the widest distribution network in the world- Nokia strived to be a

global leader but locally relevant

It formed relationships with local business partners and worked to

earn customer’s trust at a local level

   By providing the right products, features and price, the firm has successfully built long term brand value all over the world Nokia is one of the most valuable brands in the world in the Inter brand/BusinessWeek ranking, along with Google, Samsung, Apple and BlackBerry The brand continues to rank well in consumer’s minds as high

quality, robust, easy to use and

trustworthy- a perfect

combination for succeeding in emerging and mature countries

     4 L’Oreal was transformed from a small French business to an international cosmetics phenomenon by Sir Lindsay Owen Jones- its CEO an chairman for 20 years through strategic vision and precise brand management He divested weak brands, invested heavily in product innovation, acquired ethnically diverse brands, and expanded into markets no-one had ever dreamed of including China, South America, former Soviet Union. His quest was to achieve diversity, “meet the needs of men and women around the globe, and make beauty products available to as many people as possible.” L’Oreal believes in precise target marketing-hitting the right audience with the right product at the right place-is crucial to its global success; such that each brand is positioned on a very precise market segment with has little overlap with others It built its portfolio by purchasing local beauty companies all over the world, revamping them with strategic direction and expanding the brand into new areas through its powerful marketing aim Understanding the unique beauty routines an needs of different cultures, countries and consumers is critical to L’Oreal’s global success

“GO- LOCALIZATION” FAUS PAS…….

 When Coors put its brand slogan “Turn it loose” into Spanish, some read it as “suffer from diarrhea.”  Perdue’s slogan-”it takes a tough man to make a tender chicken”-was rendered into Spanish as “it takes a sexually excited man to make a chick affectionate!”  Electrolux’s British ad line for its vacuum cleaners-”nothing sucks like an Electrolux”- would certainly not lure customers in the United States!

 Hallmark cards failed in France, where consumers dislike syrupy sentiment and prefer writing their own cards.

 Philips became profitable in Japan only after reducing the size of its coffeemakers to fit smaller kitchens and its shavers to fit smaller hands.

 Coca-Cola withdrew its big two-liter bottle in Spain after discovering that few Spaniards owned refrigerators that could accommodate it.

5

THE Dos AND THE Dos…..

    For effective glocalization, companies should have holistic focus for global product strategies, global communication strategies, global pricing strategies and global distribution strategies People are often ethnocentric and favorably predisposed to their own country’s products, unless they came from a less developed country; so the more favorable the country’s image, the more prominently the “Made in…” label should be displayed Companies can target niches to establish a footing in the new markets like China’s Haier did by building a beachhead among US college students who loyally buy its mini-fridges at Walmart and elsewhere The key is to have a balance between the ‘global’ and the ‘local’- standardizing certain elements and localizing others but executing that is tricky 6