...Studies in Business and Economics THE GLOCAL STRATEGY OF GLOBAL BRANDS DUMITRESCU Luigi Lucian Blaga University of Sibiu, Romania VINEREAN Simona Lucian Blaga University of Sibiu, Romania Abstract: A few years ago, globalization was the new paradigm in international business, however from a branding perspective it has lost its initial efficiency giving 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...
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...Starbucks coffee started its global expansion from year 1996 opening its first store outside of North America in Japan. Opening globally made Starbucks Coffee Company to record total net revenues of USD 9.8 billion for its business sales and operation. One of the Starbucks Coffee Company globally expansion market is Malaysia Food and Beverages Industry. Starbucks Coffee Company expanded to Malaysia in year 1998. The mode of entry of Starbucks Coffee Company to Malaysia expanding and operating its business through the mode of licensing. Berjaya Corporation Berhad is the company that obtained the license to operate Starbucks Coffee Company locally. Berjaya Starbucks Company Sdn. Bhd. Is formed and jointly owned by Starbucks Coffee International and Berjaya Corporation Berhad. Starbucks Coffee Malaysia opened its first store on 17th December, 1998 at KL Plaza Bintang, Kuala Lumpur. The business of Starbucks Coffee Malaysia basically are selling of espresso and coffee beverages, non-espresso and coffee beverages, coffee-related accessories and equipment, gift and merchandise, souvenirs, pastries and confessions. To date, in Malaysia itself, Starbucks had more than 141 stores operating the coffee business, and more than 700 stores across six Southeast Asian markets, including Indonesia, Malaysia, the Philippines, Singapore, Thailand and, most recently, Vietnam. 2. WHAT IS MARKET SEGMENTATION Market segmentation is a process of dividing a market into distinct groups of buyers...
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...Melissa Roberts 9610377 Global Strategy & Leadership S2 2013 Case Scenario 1 Pacific Brands The aim of the restructuring strategy of PacBrands is to refocus the business on brands and move away from manufacturing. It requires a major restructuring including cost-‐cutting; reorganizing capital management and debt financing, simplifying logistics and operations, sourcing production offshore and developing capabilities required as a brand marketer. Question 1 – 4 Marks Question 2 – 8 Marks Question 3 – 6 Marks Page 1 of 23 Melissa Roberts 9610377 Pacific Brands Global Strategy & Leadership S2 2013 Module 1: An introduction to strategy and leadership The global context of business (Drivers, challenges, benefits of globalisation, value of localisation) Page 1.28 Drivers of Globalisation • Competitive Forces -‐ The ability to effectively offshore manufacturing to reduce costs has been possible because of globalization. The pressure...
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...of different culture only can be done via limited forms such as living in a foreign country, reading books and so on, they are both effective ways to learn different cultures but they are also not available for most of people, the implementation of internet provides an time saving method for spreading and learning different culture without going to the foreign country physically, most of the people can obtain and learn different culture even without leaving their home. The internet becomes an important force to push globalization and cultural harmonization; it provides the speed and convenience for people who are willing to learn and experiment foreign cultures which never exist before, and for instance, people can watch major events like Olympic game online and also learn knowledge about the host country. 2. Discuss the types of operational conflicts that could occur in an international context because of differences in attitudes towards time and individualism, give examples relative to specific countries. With the development of globalization, more and more multinational companies established their physical appearance in foreign markets, for that reason, the group work which involves people from different...
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...of different culture only can be done via limited forms such as living in a foreign country, reading books and so on, they are both effective ways to learn different cultures but they are also not available for most of people, the implementation of internet provides an time saving method for spreading and learning different culture without going to the foreign country physically, most of the people can obtain and learn different culture even without leaving their home. The internet becomes an important force to push globalization and cultural harmonization; it provides the speed and convenience for people who are willing to learn and experiment foreign cultures which never exist before, and for instance, people can watch major events like Olympic game online and also learn knowledge about the host country. 2. Discuss the types of operational conflicts that could occur in an international context because of differences in attitudes towards time and individualism, give examples relative to specific countries. With the development of globalization, more and more multinational companies established their physical appearance in foreign markets, for that reason, the group work which involves people from different...
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...Coca Cola Report Introduction Coca- Cola is one of the very well known brands operating in FMCG sector. The drink which has quenched the thirst of so many people around the globe was invented by John Pemberton a pharmacist by profession and most commonly called as “Doc”. He was assisted by Frank Robinson in the marketing of the product. The company was totally in mess until Asa Griggs Candler took over the business in 1891. Secret of Coca Cola’s success is the innovative marketing strategies of Grigg which laid the foundation for the success the company is enjoying today. Initially the drink was sold as a medicine for the treatment of fatigue and headaches. Later, with the imposition of tax in 1898 on all medicines, Grigg categorized it into beverage sector after a prolonged court battle. Ever since then, Coca-Cola is operating as one of the well known brands in beverage industry. In 1919 Candler was chosen as mayor of Atlanta which made him excessively busy because of this he decided to sale out the ownership of the company and Ernest Woodruff became the new owner in September 12, 1919. He changed the formula of the drink and labeled it as New Coke. Unfortunately, the drink was rejected by the consumers and with no option left Woodruff had to introduce the old Classic Coke back for meeting customer demands. According to Business Insiders Coca Cola is a brand with which 94% of the world’s population is familiar. The company has marked its presence in more than 200 countries...
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...Brand Strategy What can a brand do to stay profitable during a recession? Here are some realistic possibilities: • Add a lower-price item with fewer features to your product line. You might even launch it under a different brand name. Most companies should produce a line of products at different price points. • Add some additional value to the offer, such as free shipping or installation. • Maintain the current price but advertise heavily as to why customers should pay more for this brand. Procter & Gamble (P&G) uses this strategy with Tide, instead of cutting the price. • Change the brand’s image through a new campaign. Dove introduced its “Real Beauty” campaign in China in 2011 based on the notion that most women have real beauty—and Dove can help them realize it. • Innovate something new. Apple introduced its iPhone just before the Great Recession and caused Nokia’s market share to decline from 50 percent to 10 percent in five years. • Shift to win the low price position but maintain the brand value and promise. Insurance provider Geico sells auto insurance mainly online and, as a well-known brand, owns the low-cost position. Top Twelve Branding Keys For 2012 by Derrick Daye The 12th year of the 21st century is close upon us, bringing not just a new slate, but also a sense of significance: the very number 12 commands a lot of attention, in different ways. For product brands it’s a unit of trade – 12 units to a dozen, said to be cheaper than other...
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...KELLER GRADUATE SCHOOL OF MANAGEMENT Group Class Project Toyota Group II Class: GM 591 Instructor: Gerardo H. Chaljub Executive Summary Toyota Motor Corporation is a multinational corporation headquartered in Japan and is the world's largest automaker. As of 2008, Toyota employs approximately 316,000 people around the world. In 1934, while still a department of Toyota Industries, it created its first product Type A engine and in 1936 its first passenger car the Toyota AA. The company was eventually founded by Kiichiro Toyoda in 1937 as a spin-off from his father's company Toyota Industries to create automobiles. Toyota currently owns and operates Lexus and Scion brands and has a majority shareholding stake in Daihatsu Motors, and minority shareholdings in Fuji Heavy Industries Isuzu Motors, and Yamaha Motors. The company includes 522 subsidiaries. In January 2009 it announced the closure of all of its Japanese plants for 11 days to reduce output and stocks of unsold vehicles. Toyota Philosophy: Toyota's management philosophy has evolved from the company's origins and has been reflected in the terms "Lean Manufacturing" and Just in Time Production, which it was instrumental in developing. The Toyota Way has four components: 1) Long-term thinking as a basis for management decisions, 2) a process for problem-solving, 3) adding value to the organization by developing its people, and 4) recognizing that continuously solving root problems drives organizational learning...
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...they can accumulates. Facebook is fulfilling its mission to give people the power to share and make the world more open and connected. Person marketing is a part of direct marketing, the use of consumer-direct channels to reach and deliver goods and services to customers without using middleman, is crucial nowadays as people’s needs tend to be more specific, so in order to understand them, a one-to-one approach is becoming essential. In addition the traditional channels (such as mass media, rallies, coffee hours, spot TV ads, direct mail) can not guarantee a new and up-to-date way to be know by the audience. People around the world, also politicians and VIPs, use Facebook to push their campaigns and communicate with supporters and fan on a local, personalized basis. Facebook identified its target audience, and gives the tools and the data to any company to do that allowing the firms to direct speak to their customers and to receive feedback continuously from them and make the advertisement campaigns more efficient for them; Moreover thanks to the “word of mouse” it is possible to track and follow the word of mouth of the consumers thanks to tags and promote every kind of publicity and produce...
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...PART 1 Introduction CHAPTER 1 Introduction to Global Marketing Case 1-1 The Global Marketplace Is Also Local onsider the following proposition: We live in a global marketplace. McDonald’s restaurants, Sony digital TVs, LEGO toys, Swatch watches, Burberry trench coats, and Caterpillar earthmoving equipment are found practically everywhere on the planet. Global companies are fierce rivals in key markets. For example, American auto industry giants General Motors and Ford are locked in a competitive struggle with Toyota,Hyundai,and other global Asian rivals as well as European companies such as Volkswagen. U.S.based Intel, the world’s largest chip maker, competes with South Korea’s Samsung. In the global cell phone market, Nokia (Finland), Ericsson (Sweden), Motorola (United C States), and Samsung are key players. Appliances from Whirlpool and Electrolux compete for precious retail space with products manufactured and marketed by China’s Haier Group and LG of South Korea. Now consider a second proposition: We live in a world in which markets are local. In China, for example, Yum Brands’ new East Dawning fast-food chain competes with local restaurants such as New Asia Snack.1 France’s domestic film industry generates about 40 percent of local motion picture box office receipts; U.S.-made movies account for about 50 percent. In Turkey, local artists such as Sertab account for more than 80 percent of recorded Exhibit 1-1: England’s Burberry Group celebrated its...
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...eHarmony Final Paper December 15, 2010 If you are single and looking for long-term love, eHarmony.com Inc. wants to find you the "perfect mate." With traditional values and modern matchmaking possibilities, eHarmony.com has taken the electronic dating scene by storm. eHarmony has united more than 10,000 couples in marriage in its short history and, during 2008, had more than seven million registered users. Background In 2000, eHarmony was founded by Dr. Neil Clark Warren an evangelical Christian who worked for 30 years as a psychologist specializing in counseling married couples. He also authored two books, “Finding the Love of Your Life” and “Date…or Soul Mate?”, the former selling over one million copies. After a successful career of counseling married couples and research into marital problems, he came to one solid conclusion. In his biography on eHarmony’s website he states, “In almost every case, these were two persons who should never have married each other! They really didn’t belong together. They thought they did, but they were not well matched”. From there, he identified 29 dimensions that he found were consistently present in successful marriages. Dr. Warren found online dating as an opportunity to take his match making theories to a new level. eHarmony’s competitive advantage is that it established its credibility by using a scientifically developed questionnaire based on Dr. Warren’s 29 dimensions. The questionnaire does not...
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...eHarmony If you are single and looking for long-term love, eHarmony.com Inc. wants to find you the "perfect mate." With traditional values and modern matchmaking possibilities, eHarmony.com has taken the electronic dating scene by storm. eHarmony has united more than 10,000 couples in marriage in its short history and, during 2008, had more than seven million registered users. Background In 2000, eHarmony was founded by Dr. Neil Clark Warren an evangelical Christian who worked for 30 years as a psychologist specializing in counseling married couples. He also authored two books, “Finding the Love of Your Life” and “Date…or Soul Mate?”, the former selling over one million copies. After a successful career of counseling married couples and research into marital problems, he came to one solid conclusion. In his biography on eHarmony’s website he states, “In almost every case, these were two persons who should never have married each other! They really didn’t belong together. They thought they did, but they were not well matched”. From there, he identified 29 dimensions that he found were consistently present in successful marriages. Dr. Warren found online dating as an opportunity to take his match making theories to a new level. eHarmony’s competitive advantage is that it established its credibility by using a scientifically developed questionnaire based on Dr. Warren’s 29 dimensions. The questionnaire does not just ask for personal hobbies and interests...
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...How the local competition defeated a global brand: The case of Starbucks Paul G. Patterson *, Jane Scott, Mark D. Uncles School of Marketing, Australian School of Business, University of NSW, Sydney, NSW 2052, Australia a r t i c l e i n f o a b s t r a c t The astounding growth and expansion of Starbucks is outlined, both on a global scale and within Australia. The focus then shifts to the abrupt closure of three-quarters of the Australian stores in mid 2008. Several reasons for these closures are described and examined, including that: Starbucks overestimated their points of differentiation and the perceived value of their supplementary services; their service standards declined; they ignored some golden rules of international marketing; they expanded too quickly and forced themselves upon an unwilling public; they entered late into a highly competitive market; they failed to communicate the brand; and their business model was unsustainable. Key lessons that may go beyond the specifics of the Starbucks case are the importance of: undertaking market research and taking note of it; thinking globally but acting locally; establishing a differential advantage and then striving to sustain it; not losing sight of what makes a brand successful in the first place; and the necessity of having a sustainable business model. Ó 2009 Australian and New Zealand Marketing Academy. Published by Elsevier Ltd. All rights reserved. Keywords: Service brands Service quality Global branding...
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...Best Global Brands 2013 Table of Contents JEZ Leadership is evolving. It must now be shared. CEOs, CMOs, and consumers all have the power to drive brand value. Brands are where business strategy meets reality. GINNI The New Rules of Brand Leadership 2 From Information to Intelligence 82 Best Global Brands 2013 Sector Leadership 86 BISH 10 Creative Leadership 70 Methodology 120 China’s New Brand Leaders 74 Contributors 126 Corporate Citizenship 2.0 78 MARK CHIEKO The New Rules of Brand Leadership By Jez Frampton In our globalized, hyperconnected age, one question persists in boardrooms, corner offices, business schools, and conferences all over the world: What is leadership and how has it changed in the 21st century? Driven by rapid technological advancement, the digitization of nearly everything, and the ever more intricate interdependencies of the global market, the business landscape has transformed over the past two decades. Operating in a bewildering new environment in which little is certain, the pace is quicker and the dynamics more complex. Those who lead today’s brands can no longer rely on once immutable truths or principles of leadership honored in times past. It is a new world. And as purchasing increasingly shifts from a physical experience to a virtual one and transaction-based interactions between brands and consumers shift to relationship-based interactions, new skills and sensibilities are needed. Leadership...
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...Best Global Brands 2013 Table of Contents JEZ Leadership is evolving. It must now be shared. CEOs, CMOs, and consumers all have the power to drive brand value. Brands are where business strategy meets reality. GINNI The New Rules of Brand Leadership 2 From Information to Intelligence 82 Sector Leadership Best Global Brands 2013 10 86 BISH Methodology Creative Leadership 70 120 Contributors China’s New Brand Leaders 74 126 Corporate Citizenship 2.0 78 MARK CHIEKO The New Rules of Brand Leadership By Jez Frampton In our globalized, hyperconnected age, one question persists in boardrooms, corner offices, business schools, and conferences all over the world: What is leadership and how has it changed in the 21st century? Driven by rapid technological advancement, the digitization of nearly everything, and the ever more intricate interdependencies of the global market, the business landscape has transformed over the past two decades. Operating in a bewildering new environment in which little is certain, the pace is quicker and the dynamics more complex. Those who lead today’s brands can no longer rely on once immutable truths or principles of leadership honored in times past. It is a new world. And as purchasing increasingly shifts from a physical experience to a virtual one and transaction-based interactions between brands and consumers shift to relationship-based interactions, new skills and sensibilities are needed. Leadership roles...
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