Exercise 1
Multidomestic vs. Global
Debriefing
J.-C. Usunier – International Marketing – October
2011
General Outcomes 2011-12
• Chosen industries are: tobacco(4),
cars(4), airlines(4), beer(3), meat-based
food(2), sports shoes(2), portable
computers(1), ski(1), toilet tissues(1)
•According to aggregated ratings, all
industries seem to be rather global
except beer (above a total of 15 points)
Industry
Sports Shoes
Portable
Computer
Toilet Tissues
Airlines
Tobacco
Cars
Ski Industry
Meat-based
foods
Beer
Total Mean
26
26
25
23
21
21
19
18
14
Tobacco
Airlines
Cars
Beer
Meatbased
food
Sports
Shoes
Portable
Computers
Toilet
Tissue
Ski
25
25
24
16
18
26
26
25
19
23
25
20
14
17
N/A
19
22
19
12
18
19
19
General Outcomes
(Total) 2010
• The Micro-Chips and Automatic
Blood Analyzers industries have been
rated as the most global industries
(Total: 30 points)
•All industries seem to be rather global
•Your tendency (even stronger in 2011)
is to overestimate similarities by much;
your assumption: everything is rather
undifferentiated
•“Motor insurance”, “Rail Transport
Services” and “Betting and Gambling”
industries tend to be viewed as more
multi-domestic
Industry
Micro Chips
Automatic Blood Analyzers
Ski Lifts
Portable Computer
IT Services
Air Transport Services
Cement
Writing instruments
Auditing Services
Ski Industry
Sport Shoes
Toilet Tissues
Tobacco
Beer
Airlines - Services
Higher Education Service
Mobile Com. Services
Sheets and Pillows
Mail Services
Bottled mineral water
Pharmaceuticals
(prescription)
Market Research Services
Life Insurance
Advertising Service
Yoghurts
Meat-based Foods
Washing Machines
Betting and Gambling
Rail Transportation Services
Motor insurance
Total
30
30
26
26
26
25.5
25
24
24
24
23
22
21
21
19
17
17
17
17
17
17
17
14
13
13
12
11
8
6
2
You find it global because you oversimplify
 Important to look at different product types, sizes, tastes,
usages, etc.
 Consider consumer motivation
 Take into account how people consume in local contexts
(e.g. sharing food or not)
 Think about words in the local language and what they
express about local ways of consumption
These points have significant consequences for
international marketing
Global consumers?
Again many industries are rated quite high. Students often
consider consumers to be very similar all around the
world.




Disagreement among groups within same industry e.g. in airlines industry
consumer ratings vary from 8 to 2!
Toilet tissues: “Toilet tissues are widely used all over the world but in different
ways. For example, in Muslim countries people use water after toilet”
Tobacco: “The consumer preferences and tastes are mainly similar, with some
minor variations (strong tobacco in Japan etc.)”
Meat-based food: “Differences between consumers in the following categories:
Culture, Religion, Habits”
Tobacco
Airline
s
Cars
Beer
Meatbased
food
Sports
Shoes
Portable
Computers
Toilet
Tissue
Ski
8
8
7
8
8
9
8
7
4
7
8
4
3
6
N/A
4
7
4
3
3
2
4
Global consumers?
2010
 There are differences
between the ratings of last
year and this year
especially for ski, sports
shoes, and meat-based
foods industry.
Industry
Micro Chips
Automatic Blood Analyzers
Ski Lifts
Writing instruments
Ski Industry
IT Services
Air Transp. Services (G. 12)
Cement
Portable Computer
Toilet Tissues
Mail Services
Tobacco
Beer
Air Transport Services (G1)
Mobile Com Services
Sheets and Pillows
Auditing Services
Market Research Services
Pharmaceuticals prescription
Advertising Service
Sport Shoes
Higher Education Service
Meat-based Foods
Betting and Gambling
Washing Machines
Bottled mineral water
Yoghurts
Life Insurance
Rail Transportation Services
Motor insurance
Consumer
10
10
9
9
8
8
8
8
8
8
8
7
7
7
7
7
7
7
6
4
4
3
3
3
3
2
2
2
2
0
Global product/service?
Once more,industries are seen as very global in terms of the
product/service they offer worldwide.


There is generally agreement between groups for a particular industry
Meat-Based Foods: “The products have to fit the taste, the culture, the
religion and habits of the consumers.”
Tobacco
Airline
s
Cars
Beer
Meatbased
food
Sports
Shoes
Portable
Computers
Toilet
Tissue
Ski
8
9
8
5
8
8
9
9
7
7
9
8
4
5
N/A
7
9
7
3
6
8
7
Global industry?
Industries and their competitive scenes themselves are also
considered quite global as a whole.



Airlines: “The airline services are considered global. In the last few years alliances
among companies have been introduced to extend their worldwide leverage and
improve their worldwide service.”
Tobacco: “There are 5 big global players (Philip Morris, BAT etc.) representing
60% of the market share. But it shouldn‘t be neglected that 40% are monopolistic
local players“
Beer: “In Germany there is a preference for the local products (…). In the USA and
other countries such as Japan, Netherlands, Spain it is the opposite.”
Tobacco
Airline
s
Cars
Beer
Meatbased
food
Sports
Shoes
Portable
Computers
Toilet
Tissue
Ski
9
9
9
6
5
9
9
9
8
9
9
9
5
3
9
8
8
5
8
5
7
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Exercise 1: Multidomestic vs Global