Exercise 1
Multidomestic vs. Global
Debriefing
J.-C. Usunier – International Marketing – October 2012
Industry
Total
Portable Computer
30
Airlines
28
Air Transportation Services
27
Mirco Chips
26
Automatic Blood Analyzers
26
Mail Services
26
Washing Machines
24
Sport Shoes
23
Pharmaceuticals
22
• According to aggregated ratings, all
industries except betting and gambling
seem to be rather global (above a total
of 15 points)
Meat-based Foods
22
Yoghurts
21
Life Insurance
21
Bottled mineral water
20
Cakes and Biscuits
20
Automative (cars)
19
• Sheets and pillows, ski, beer and
betting and bambling industries tend to
be seen more multi-domestic
Toilet Tissues
18
Tobacco (package of cigarettes)
18
Higher Education Service
18
Mobile Communication Services
18
Sheets and Pillows
17
Ski Industry
16
Beer
16
Betting and Gambling
10
General Outcomes (Total)
• Portable computer industry has been
rated as the most global industries
(Total: 30 points)
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.
• 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”
Industry
Consumer
Portable Computer
10
Meat-based Foods
10
Mobile Communication Services
10
Airlines
9
Air Transportation Services
9
Mirco Chips
9
Automatic Blood Analyzers
8
Mail Services
8
Life Insurance
8
Bottled mineral water
8
Washing Machines
7
Sport Shoes
7
Yoghurts
7
Cakes and Biscuits
7
Toilet Tissues
7
Pharmaceuticals
5
Beer
5
Tobacco (package of cigarettes)
4
Higher Education Service
4
Sheets and Pillows
4
Automative (cars)
3
Ski Industry
3
Betting and Gambling
3
Global product/service?
Once more, the industries are seen as very
global in terms of the product/service they offer
worldwide.



Sheets & Pillows: “The product is mainly
universal for orthopaedic and sleeping
purposes (global). But not for the decorative
purposes due to cultural preferences (multidomestic).”
Automatic Blood Analyzers: “Even if there are
many different diseases around the world, the
main function of this product is to analyze
blood.”
Meat-Based Foods: “The products have to fit
the taste, the culture, the religion and habits of
the consumers.”
Industry
Prod/Serv
Portable Computer
10
Airlines
9
Air Transportation Services
9
Automatic Blood Analyzers
9
Mail Services
9
Life Insurance
9
Bottled mineral water
9
Mirco Chips
8
Washing Machines
8
Cakes and Biscuits
8
Pharmaceuticals
8
Sheets and Pillows
8
Ski Industry
8
Sport Shoes
7
Automative (cars)
7
Meat-based Foods
6
Toilet Tissues
6
Tobacco (package of cigarettes)
6
Higher Education Service
6
Mobile Communication Services
5
Yoghurts
5
Beer
3
Betting and Gambling
2
Global industry?
Industries and their competitive scenes
themselves are also considered as 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.”
Industry
Rating
Portable Computer
10
Airlines
10
Air Transportation Services
9
Automatic Blood Analyzers
9
Mail Services
9
Mirco Chips
9
Washing Machines
9
Pharmaceuticals
9
Sport Shoes
9
Automative (cars)
9
Yoghurts
9
Tobacco (package of cigarettes)
8
Higher Education Service
8
Beer
8
Meat-based Foods
6
Cakes and Biscuits
5
Sheets and Pillows
5
Ski Industry
5
Toilet Tissues
5
Betting and Gambling
5
Life Insurance
4
Bottled mineral water
3
Mobile Communication Services
3