...towards buying their products. What problems does this cause? What could be done to encourage people to buy local products? (Laila) With the fact that increasing monetary funds are being invested in the marketing and promotion by big companies, customers tend to choose their products. This trend will cause several problems, and various measures can be taken by governments and companies to promote the sales of the local products. The giant company’s market expansion which is stimulated by the marketing and promotion may cause a variety of problems. Firstly, it forces many enterprises to join the war of sales promotion. More and more companies would focus on the marketing rather than the product, which, is supposed to be the most important part of a company. If the quality of products decreases, people will decrease their interest in products to a great extent, then the huge amount of marketing strategies will be pointless and in the end, damage the whole industry. Secondly, the imbalance of the market will be caused. Big companies become bigger, and companies with limited budget will be eliminated from the market. Thus, startups which provide good quality products have no opportunities to approach the public. Moreover, large businesses from other nations also have a huge impact on the local companies since nowadays people are more likely to choose the brand with world-wide recognition. This lead to the question—what can we do to promote the sales of the local goods? There...
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...HIMALAYA - Case Questions 1. In view of increasing interest among local consumers with regards to herbal products, what immediate steps should Embun Elit Take. Embun is well establishing in the current market with 200 ranges of products, they should go for market penetration strategy. This strategy involves attempts to increase the present buyers’ usage or consumption rates of the offering. The mix of marketing activities will enable them to capture bigger market or the volume of sales. The strategy inclusive of reduction in the product pricing by bigger promotion and by product in introducing new product or less favoured products. Heavier promotion in emphasizing the importance of herbal product in daily usage will enable them to capture wider markets especially the younger markets between 18 – 24 years old. These demographic are big and always on trend / or to be called the trend followers, with bigger promotional activities these market segment can be concurred and will be a long term customers due to the product knowledge that they had. In term of product Himalaya have about 200 product range that been offered and in Malaysia about 100 only due to the strict requirement of local authorities in safe guarding the local players and pharmaceutical restriction. Here Himalaya can work with local players to be part of Himalaya and produce the product with Malaysia resources. R&D plays a major role in getting a scientific write out for the certification and approval...
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...Internet Marketing is an all-inclusive term for marketing products and/or services online – and like many all-inclusive terms, Internet marketing means different things to different people. Essentially, though, Internet marketing refers to the strategies that are used to market a product or service online, marketing strategies that include search engine optimization and search engine submission, copywriting that encourages site visitors to take action, web site design strategies, online promotions, reciprocal linking, and email marketing – and that’s just hitting the highlights. This is one of the trends in the marketing industry. These trends affect the advertising field by allowing them to promote a product or services widely through the internet. Many firms are embracing a paradigm that is shifting the focus of advertising methodology from traditional text and image to the JavaScript and Adobe Flash, which is known as the online advertising. The potential customer can access information concerning the service or product to help in deciding the need or use of products through online. Another that are often used by the marketers is applying local cultures in a global product. In this trend they usually brings in a global product into a country and applies a local culture to it, such as the country’s national language, costumes, local celebrities and much more just to attract their local customer to buy the product. Understanding a country’s culture is a key to global success...
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...the fact that consumers do not seem to feel a connection anymore with the standardized products of global corporations, catered to them in mass marketing communication programs. With their centralized decision making, most companies simply stopped having a connection with the new global marketplace and neglected its emergence. Hence, the influence of local characteristics arose, and with that a new term that encapsulates the global and the local – glocal. “Glocalization” encourages companies to “think global, act local”, and they could do so by using the global brand, while localizing certain elements of that brand in order to suit a particular country. Keywords: global brands, globalization, glocal strategy, glocal marketing. 1. Introduction In 1983, Theodore Levitt published a provocative Harvard Business Review article entitled “The Globalization of Markets”, in which he stated that a new global market, based on uniform products and services, had emerged. He asserted that large scale companies have stopped emphasizing on the customization of their offers to providing globally standardized products that are advanced, functional, reliable and low priced. He argued that informed customers were heading toward a “convergence of tastes”; thus corporations should exploit the “economics of simplicity” and he maintained that the future belonged to global corporations that did not cater to local differences in taste but, instead, adopted strategies that „operated as if the entire...
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...that all aspects of planning be utilized to the fullest. This includes the analysis segmentation and targeting of a potential market to facilitate sales whether retail, local, or global. When these protocol are combined this results in implementation and standardization strategies. Current research also show that, “targeting implementation also implies developing media and message strategies to reach each selected segment”(Johansson, 2009). Team A will construct a document that reviews the implementation strategy for their products which includes the protocol to be used in the global standardization of the merchandise. Factors influencing local and foreign buyer behavior There are many factors that could influence the local and foreign buyer behavior but in this paper, we will focus on four major aspects of influencing. The four key components that we will elaborate on are Cultural, Social, Personal, and Psychological factors. These four key components can be interchanged on the local and foreign buyers market. Understand these particular factors will not only be a good basis for a successful product launch but it can also help bridge the gap within global affairs and communication. Cultural factors involve many situations depending on the country of orgin, or if there is a specific need for the product within that country. According to Perrau, Culture is essential when it comes to understanding the desires and behaviors of a consumer (Perrau 2013). Throughout his subsistence...
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...PRODUCT /MARKET EXPANSION GRID New Existing New Existing FIGURE 1 Figure 1 above shows the product/market expansion grid model of Ansoff that has proven to be very useful in business strategy processes to determine business growth opportunities. This model has two dimensions which are products and markets. There four strategies altogether in this model, one for each quadrant. First quadrant is about market penetration, second is about product development, third is about market development and lastly is diversification. Mc Donald’s product/market expansion grids are as follows: Market penetration Marketing efforts of the company to offer their existing product in the current market is called market penetration strategy. This strategy is when the company is looking to adapt for increasing their sales and profits. The best way to do this is to attract the competitor’s customer and looking for potential customer for the existing products. There are three major way to increasing current product market share which are encourage current customer to buy more, attract competitor’s customer, and convince non-user to use the products. McDonald’s current products are Big Mac, Grilled chicken Foldovers, Quarter Pounder, Beverages, and others. As for their current market, they have students, working professionals and also families. In order to increase their market, Mc Donald’s collaborate with institutes and universities for opening an...
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...marketing options for its Bio-Vert products in Canada and U.S. External analysis & issues • 2007 Environment Quality Act (EQA) in Quebec province demanded low-phosphorus and phosphorus-free laundry and dishwashing • “EcoLogo” certification on green cleaning products and high certification cost • Blue-green algae crisis effects • Inevitable “spring cleaning” of industry consolidation in the eco-cleaning products • International brands held 95.3% of market share of household cleaning products; They have invaded into green products market Uncertainty in this industry; highly susceptible to new regulations; increased competition from multiple-size competitors External analysis & issues • Customers’ shifting preference towards green products for their minimal environment effects and less health concerns • Confusing information in the media surrounding green cleaning products impeded consumers’ abilities to make informed purchasing decision • Stereotype towards common green cleaning products regarding inferior effectiveness/performance • “ value-action gap” • Media advocated for green products • Environment products were “not yet in fashion” Customers’ perception decides the future of green cleaning products Internal analysis & issues • Products: Differentiated from competitors in the market for “EcoLogo” certification and superior product efficiency; recommended by Quebec-based consumer protection organization • Positioning: local small manufacturer which lacked the...
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...Japanese company Panasonic made by approaching China as a source of consumption for its products as opposed to just a manufacturing base for its products. Until recently, Panasonic had many of its products manufactured in emerging market countries and would then sell these products to developed markets such as America, Europe, and in their home country of Japan. Knowingly or unknowingly, this way of doing business fostered an “us” and “them” mentality, or the haves and the have-nots, where emerging economies were not viewed as a meaningful source of sales for developed countries’ products. However, as evidenced by the success of Panasonic’s competitors, Panasonic recently acknowledged that it can no longer ignore China’s very rapidly growing middle class society and 1.3 billion people. The challenge for Panasonic was in determining how to assimilate their products into the Chinese local markets. In the past, the product design and manufacturing of Panasonic’s baseline products of washing machines, kitchen dishwashers, and refrigerators were only slightly altered for different geographic markets, almost all of which were developed economies/markets. The obstacles that Panasonic faced were no different than those of other consumer products companies that compete worldwide: how does one balance the economic advantages of an integrated worldwide delivery model with trying to meet local consumers’ particular needs. In brief, this article focuses on this tug of war tension between...
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...customers, D-I-F-M customers and professional customers. Home depot is famous for its D-I-Y products and services. In 2006, after housing market turn down in the United States, Home Depot entered into the China home improvement market through a full M&A activity. It has twelve stores in Beijing, Shanghai, and other large cities in China. Home Depot served the similar services and products to Chinese customers, which also include the D-I-Y products. However, Home Depot did not succeed this time in China. From 2006 to 2012, the top managers in China area have been changed three times. Home Depot wanted to find out the solutions to this bad situation in local market. However, the situation was worsened when the building material market turned down in 2012, 12 main stores have been closed in local market. Top managers believe that the main reason for their failure is the cultural difference. The D-I-Y services and products do not fit the local culture. Changes and effects Business Environment There are changes in business environment for Home Depot. In United States, the biggest competitor for the Home Depot is Lowe's. They have very similar products and services. Both of them create the competitive advantage based on the cost advantage because of the bargaining power with the suppliers. Managers might think Home Depot could get the same competitive advantage in local market. However, the business models for the housing improvement retailers are very different...
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...international marketers group relevant markets based on both environmental as well as marketing management bases. The marketing management bases are classified as: (1) product-related; (2) promotion-related; (3) price-related; and (4) distribution-related Compare and contrast standardization with customization of international marketing strategies. The notion of globalization - a global firm pursuing a global strategy - is very appealing to managers. (Hardy, 1994, p365). As soon as the firms decide to expand into the global marketplace, the international marketing manager should determine what strategy would be adopted to mix the four P's of marketing: product, pricing, promotion, and place in the complex environment in future. In other words, the manager must decide either the standardisation strategy or customization strategy is suitable for the particular foreign market. 1.The meanings of standardization and customization strategies Standardization became a popular buzzword in the 1980s, as proponents such as Kenichi Ohmate argued that customers in the Triad were becoming increasingly alike, with similar incomes, educational achievements, lifestyles, and aspirations. (Manoney, Trigg, Griffin, and Pustay, 1998, p612). Therefore, standardization strategy indicates that the firm tends to offer the similar products with same price and distribution to the consumers. Coca-Cola was one of the first international businesses to adopt this strategy and obtained a great achievement...
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...Coca-Cola Case Aravind Jeevan Coca-Cola is the pioneer in soft drink industry and had been serving people for more than a century. It was started in Atlanta in 1986 as a company which made drinks from Coco leaf. Today Coca-Cola is the top soft drink company in the world and aiming to be a total beverage company. The original coke has been the company’s bestselling product for decades. Coke’s environment had changed couple of times in the past few decades. The major change was when Coke outsourced its bottler system in 1986. The company concentrated on the production of the concentrate and marketing strategies. The production and distribution of the product was left to independent bottlers. The second major environment shift was when the company executed the new policy “think local, act local”. This lead to a decentralization of the company’s management, strategy making and marketing activities to shift from Atlanta to rest of the globe. One of the success strategies of Coca-Cola Company under the leadership of CEO Roberto Goizueta followed by Douglas Ivester was the creation of independent bottler system. A global expansion was needed for growth and it required an enormous amount of capital. In order to achieve this task Coca-Cola sold its in-house bottlers and outsourced the bottler system to independent companies all over the world. Another part of the strategy was to integrate the bottler units into one single independent unit called CCE. Also Coke picked the bottler companies...
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...Strategies for Competing Internationally As a consequence of the two opposing pressures, reduction of costs and local adaptation, companies have four basic strategies for competing internationally: 1. home replication 2. multidomestic 3. global 4. transnational The strategy that would be most appropriate for a company, overall and for various activities in the value chain, depends on the amount of pressure the company faces to adapt to local markets and achieve cost reductions. Each of these strategies has its own set of advantages and disadvantages: 1) A home replication strategy centralizes product development strategy in the home country, and after differentiated products are developed in this home market, they are transferred abroad to capture additional value. This strategic choice is sometimes called international strategy. 2) A global strategy tends to be used when a company faces strong pressures for reducing costs and limited pressure to adapt products for local markets. Strategy and decision making is typically centralized, and the company offers standardized products and services. Value chain activities are often located in only one or a few areas, to help achieve economies of scale. There is emphasis on close coordination and integration of activities across products and markets, and development of efficient logistics and distribution capabilities. Global strategies may confront challenges such as limited ability to adjust to changes in...
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...that become linked to the brand, of a brand from the experiential aspect. People engaged in branding seek to develop or align the expectations behind the brand experience, creating the impression that a brand associated with a product or service has certain qualities or characteristics that make it special or unique. Brand has continued to evolve to encompass identity. It affects the personality of a product, company or service. It is defined by a perception, good or bad, that your customers or prospects have about you. Consumers may look on branding as an aspect of products or services, as it often serves to denote a certain attractive quality or characteristic. There are some element of brand such as local brand, private brand, national brand, and also global brand. There are some types of brand which expose the difference stage of brand. Different stage of brand being use by marketers will give them a variety of strategy to get a prospects or customer. Now I will explain some type of brand which are local brand, private brand, national brand and global brand base from what I read on the article and other resources. LOCAL BRAND A brand that is sold and marketed distributed and promoted in a relatively small and restricted geographical area. A local brand is a brand that can be found in only one country or region. It may also be a brand that is...
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...International Business Final report Introduction In the 90s, Nestlé had to face significant challenges in maintaining its growth rate. The population was indeed stagnant, the war on prices and consumer bargain threats were fierce, and there has been increased emphasis on local and farm-to-table products in the developed western countries. The power is shifting from large scale manufacturers to short distribution channels in these countries. Consequently, to remain "the world's leading nutrition, health and wellness company" and keep high market shares, Nestlé wrote a new international strategy : the company decided to focus on emerging markets like China (rather than North American or European countries). Drivers are clear : with nearly 1500 billion inhabitants, increasing standards of living, and more friendly governmental policies, China is an attractive country and has market potential for Nestlé. In this report, I will explain Nestlé's international strategy in the Chinese ice cream market, and the different moves and tactics it used to compete with local brands in the first times. I will then discuss the effectiveness of the strategy and I will conclude with Nestlé's new international business strategy in China. Nestlé's strategy in the Chinese ice cream market : an unusual entry-mode Founded in 1905 by the merger of the Anglo-Swiss Milk Company, Nestlé is a Swiss multinational. With more than 450 manufacturing facilities in over 80 countries spread over 6 continents...
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...of the Case Tesco, a multinational retail giant from Britain, engaged in a joint venture with Samsung Group during the late 1990s in order to enter Korea's competitive retail industry. The new brand was called Homeplus and its management implemented various policies aimed at localizing the business while also introducing business practices from Tesco's British headquarters. Homeplus was the first retailing company to introduce the supply chain management system and to develop two different products that would cater the preference of the various income level earners. The company invested in growth and diversification through large discount stores offering an “all in one spot” shopping experience, small-sized-super-supermarkets, private brands, and online shopping. The secrets to Tesco’s success are its undying drive to provide value to customers and continued investment in latest technologies, such as online shopping which allows their techy customers to conveniently order their products through the use of their handy tablets and smartphones. Tesco exerted lots of efforts to understand its customers, given that Koreans are the most demanding consumers in the world and like to purchase a small quantity of groceries at very...
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