GLOBAL SIMILARITIES
AND DIFFERENCES………...
CONSUMER BEHAVIOUR
VS. CONSUMER
BEHAVIOUR…………..
MARKETING
ADAPTATION…….……
• 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
•
•
•
•
•
•
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
• Product features, labeling, colors, materials, sales promotion, advertising
media
• Brand name, packaging, advertising execution, prices, advertising themes
• Ignores differences in consumer needs, wants and usage patterns for
products
• Ignores differences in consumer response in marketing programs and
NO TO
activities
STANDARDIZATION ????.......... • 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
BRAND
PERCEPTION

GLOCALIZATION KING !!!


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 Interbrand/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