Glocalization

REPORT ON GLOCALIZATION
SUBMITTED BY SANIA GADIT TYBMS NARSEE MONJEE COLLEGE VILE PARLE (WEST)

SUBMITTED TO

UNIVERSITY OF MUMBAI
ACADEMIC YEAR 2008-2009
PROJECT CO-ORDINATOR: Mr.Nimesh Patel

REPORT ON
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Glocalization

GLOCALIZATION
SUBMITTED BY SANIA GADIT TYBMS (Semester 5) NARSEE MONJEE COLLEGE VILE PARLE (WEST)

SUBMITTED TO

UNIVERSITY OF MUMBAI
ACADEMIC YEAR 2008-2009
DATE OF SUBMISSION: SEPTEMBER, 2008

PROJECT CO-ORDINATOR: Mr.Nimesh Patel

DECLARATION

Glocalization I, Ms.Sania Gadit of NM College of TYBMS (Semester 5) hereby declare that I have completed this project on Glocalization in the academic year 2008-09. The information submitted is true and original to the best of my knowledge.

SaniaGadit TYBMS NMCollege 2008-09

CERTIFICATE

I, Mr.Nimesh Patel , hereby certify that Ms.Sania Gadit of NM College of TYBMS (Semester 5) has completed the project on Glocalization in the academic year 2008-09. The information submitted is true and original to the best of my knowledge.

(Principal)

Nimesh Patel (Project Co-ordinator)

Date: 01/09/2008

TO WHOMSOEVER IT MAY CONCERN

Glocalization

This is to certify that Ms.Sania Gadit of TYBMS (Narsee Monjee College) had approached me personally at McDonalds (Vile parle-West) for his project on Glocalization and was provided with required guidance and information.

Giri Prasad (Manager)

Acknowledgements

Many people have played a part in making this project study a success by rendering their valuable inputs and useful suggestions. Firstly, I would like to express my gratitude to the University of Mumbai for providing me with the opportunity to explore the dimensions of the practical side of management.

Glocalization I am particularly thankful to Mr.Nimesh Patel (project guide) for extending his immense support, time and guidance towards the completion of the project. His ideas and suggestions were indeed creative which in turn helped me to get greater insight about my project. I would also like to extend my sincere gratitude to Mr. Giri Prasad (first -hand manager Vile Parle McDonalds) for sharing their invaluable information for my project. I am also thankful to my parents, my colleagues and subordinates for encouraging me and guiding me, inspiring me throughout till the completion of the project. I would like to thank all these people who have helped me and guided me as mentors and shown considerable amount of patience and sincerity in facilitating the completion of the project through their experience, knowledge, time and devotion. In the end, I would also like to thank all those people who have directly or indirectly helped me out in successfully completing this project.

Exexutive Summary
THINK GLOBAL, ACT LOCAL
The phrase think globally act locally applies to international product introductions at every level, from supply chain channels to product packaging. The understanding of cultural nuances may mean the difference between success and failure. The project reveals the importance of glocalizing products and services in todays world. Glocalization means basically the creation of products or services intended for the global market, but customized to suit the local culture. MNCs want to have a loyal customer as the outlook for these companies is long-term. They found out that 5

Glocalization different countries exibit different peculiar behaviour. To satisfy them, they have a different game plan. This game plan is Glocality.

The project begins by understanding the concept and evolution of Glocalization. It explains that a grey area exists between standardization and adaptation- that is called Glocalization. It is basically a combination of globalization and localization. The importance of adapting a product or service to local country in terms of consumer needs and wants, variations in conditions of use, differences in income levels, strong cultural differences and government requirements is highlighted. In the second chapter, the need to tailor marketing programs to local market is explained in detail. The programs include the product, brands, packaging, advertising and pricing concepts, which are tailored to different countries having different variables. There are certain circumstances, which favour using an glocalization strategy for the offered product:

When the company is subjected to strong competition and it does not occupy a dominant position in the market. For the exporter, this signifies that he will have to design specific products for these consumers if he wants to be different from the competition and maintain his part of the market.

When the product (industrial or consumer goods) is subject to local legislation and regulations. Different technical and industrial standards could also bring about modifications

When the conditions for using the product are different in the foreign market due to the effect of factors such as the climate, the level of expertise and education of users, the market infrastructure, and technical standards.

When the purchasing power of local consumers is different to that of domestic consumers as this has an influence on their purchasing behaviour. Therefore, the level of revenue will have an influence on the nature, size and marketing of durable and non-durable consumer goods.

When the product is subject to the specific culture, language, tastes, preferences, needs, and habits of local consumers.

Cultural preferences are a major reason for adapting products as they affect purchasing behaviour and product use. This is explained with reference to Indian culture. It includes the marketing strategies to be followed for cross-cultural business and problems related to cross cultural

Glocalization marketing. Then, the glocalization process adopted by some of the MNCs in India is illustrated in detail. It includes why glocality is done in India and how glocality works in India. The next chapter is all about case study on McDonalds who has a global approach but customizes its menus to local culture. This case study is explained in Indian context. It shows how McDonalds have adapted itself in India and emerged as one of the fastest provider of fast food. The study on McDonalds envisages the entry strategy in India through sound research and development, its operations in India, the Indian menu offered, McDonalds as a success brand, packaging and promotion in India. The case study is also followed by recommendation for McDonalds as in how they can come up with a unique concept of serving Udipi foods in their outlets. This could be their future marketing strategy in India. The recommendation is analyzed in terms of the new product innovation, market research, the target market, the positioning strategy, pricing strategy and promotion and advertising strategy. Also, the project includes some articles, which show the importance of Glocalization in a more practical way.

TABLE OF CONTENTS

CHAPTER 1 - INTRODUCTION.1 1. DEFINITION OF GLOCALIZATION..2 2. EVOLUTION OF GLOCALIZATION..3 3. OVERVIEW OF GLOCALIZATION7 CHAPTER 2 - TAILORING PROGRAMS TO LOCAL MARKET.11 1. 2. 3. 4. 5. 6. PRODUCT MODIFICATION11 BRANDS.16 PACKAGING..19 ADVERTISING...22 PRICING..31 COUNTRY OF ORIGIN EFFECT..32

CHAPTER 3 - UNDERSTANDING CULTURE (In Indian Context)34 1. MARKETING STRATEGIES FOR CROSS-CULTURAL BUSINESS34 2. PROBLEMS RELATED TO CROSS CULTURAL MARKETING..36 7

Glocalization CHAPTER 4 - GLOCALITY IN INDIA37 1. 2. 3. 4. INTRODUCTION37 WHY GLOCALITY?...........................................................................................................39 HOW GLOCALITY WORKS?...........................................................................................43 GLOCAL STRATEGIES FOR FEW MNCs...48

CHAPTER 5 - CASE STUDY ON MCDONALDS50 CHAPTER 6 - CONCLUSION65 CHAPTER 7 - ANNEXURE66 CHAPTER 8 - REFERENCES.68

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INTRODUCTION
The old economy revolved around manufacturing companies whose main drive was to standardize production, products, and business processes. They investigated large sums in brand building to tout the advantages of their standard market offerings. Through standardization and branding, manufacturers hoped to grow and take advantage of economies of scale.

In contrast, the new economy is supported by information processes. Information has the advantages of being easy to differentiate, customize, personalize, and dispatch over networks at incredible speed. As companies grew proficient at gathering information about individual customers and business partners (suppliers, distributors, retailers), and as their factories were designed more flexibly, they increased their ability to individualize their market offerings, messages, and media. For example, Dell Computer invites customers to specify exactly what they want in a computer and delivers a custom-built one in a few days. P&G, on its Reflect.com site, allows a person to specify needs for a shampoo by answering a set of questions, and then P&G formulates a unique shampoo for the person. Levis is now able to produce customized jeans based on a persons measurements.

As the firm focuses attention on developing its position in local national markets and broadening its market base, programs will need to be tailored to local market conditions- demand, government or industry regulations, or competition. Products may need to be adapted to different usage conditions, product standards and requirements, and customer preferences. Advertising platforms and promotion themes need to be modified in the light of government regulation, availability and reach of media, and customer response patterns. Similarly, pricing needs to take in to consideration differences in demand conditions and price sensitivity, competing and substitute products and services, and regulation from one market to another, while at the same time covering costs. Finally, distribution tactics will need to be tailored to local customer shopping patterns.

Glocalization

DEFINITION OF GLOCALIZATION

Glocalization is a term that was invented in order to emphasize that the globalization of a product is more likely to succeed when the product or service is adapted specifically to each locality or culture it is marketed in. The term combines the word globalization with localization. (An earlier term for globalization in terms of product preparedness for international marketing is internationalization). The term first appeared in the late 1980s in articles by Japanese economists in the Harvard Business Review. According to the sociologist Roland Robertson, who is credited with popularizing the term, glocalization describes the tempering effects of local conditions on global pressures. At a 1997 conference on "Globalization and Indigenous Culture," Robertson said that glocalization "means the simultaneity --- the co-presence --- of both universalizing and particularizing tendencies." The increasing presence of McDonalds restaurants worldwide is an example of globalization, while the restaurant chain's menu changes in an attempt to appeal to local palates are an example of glocalization. Perhaps even more illustrative of glocalization: For promotions in France, the restaurant chain recently chose to replace its familiar Ronald McDonald mascot with Asterix the Gaul, a popular French cartoon character.

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EVOLUTION OF GLOCALIZATION
In general, the firm would prefer to standardize as much of the marketing mix as possible across countries. Standardization has a number of benefits, including economies of scale in production and promotional costs, presentation of a unified image across countries, and easier transfer of ideas and experience, as well as co-ordination and control of international operations. Yet, total standardization is rarely desirable. There are numerous barriers to standardization, ranging from regulation to differing consumer preferences. Consequently, some tailoring of programs to the local market is often needed.

In some instances, government or trade regulations relating to product content and labeling, necessitate modification of programs. In other cases, a competitor can have preempted a copy platform, or certain distribution channels, requiring changes in the firms marketing programs. Alternatively, certain types of media or distribution channels may not be available or have the same reach in other countries; so marketing tactics have to be adapted to reach the target market. Differences in customer response patterns, purchasing behaviour, media exposure, life-style patterns, organizational structure, and the heterogeneity of customer behaviour from one country to another also help determine the need to modify marketing programs. Typically, the broader the range of customers the firm aims to reach, the more likely some adaptation of marketing programs will be required.

The need for modification is also likely to vary from one element of the marketing mix to another. Positioning and product design may, for example, remain substantially the same, with only minor modifications, while advertising copy, pricing, and distribution have to be adapted. Alternatively, distribution might be the same, but product and promotional tactics have to be adapted. A full decade has passed away since Levitts globalization proposition was issued. How have the multinationals reacted? Have they standardized or adapted? In general, industrial goods are the most likely to be successful in any globalization strategy as are modern technologically advanced consumer durables. Traditional consumer non-durable products are most likely to require customization due to national tastes and habits. Consumers perceptions of product preference, 11

Glocalization brand recognition, and price for a consumer non-durable brand product in diverse countries differs and consumer differences do exist in diverse countries with regard to their perception of a consumer non-durable product. When Standardization is preferred High costs of adaptation Primarily industrial products Convergence and similar taste in diverse country markets Predominant use in urban environments Marketing to predominantly similar countries Centralized management Strong country of origin image and effect Scale of economies in production, R&D and marketing Meeting competition when competitors produce standardized products Consumer mobility If positive home country image (country of origin) effect exists

Where Adaptation is advantageous Differences in technical standards Primarily consumer and personal use products Variations in consumer needs Variations in conditions of use Variations in ability to buy, differences in income levels Variations in technical sophistication, skill levels of users Strong cultural differences Local environment induced adaptation, differences in raw materials availability, government required standards and regulations.

Use by competitors One splendid example comes from Japan. Gillette has a 10 percent market share in Japan (65-70 percent worldwide); Schick has 62 percent. Schick stresses its Japanese way of marketing (adapt) while Gillette is emphasizing its American roots (standardize) by airing the same ads it runs in the U.S. and selling Sensor in the same packages with the brand names in bold English letters and a 12

Glocalization Japanese version of it only in tiny letters in a corner. The only difference in the TV ad is that the narrator says the best a man can get in Japanese. Schick on the other hand, has not used a foreigner in its ads for the past decade. The Tracer TV ads show a young Japanese actor shaving before taking his dog to the beach. The product is called FX in Japanese because Schick says it is easier for the Japanese to pronounce. Schick sells razors through Seiko and 150,000 wholesalers. Gillette tried to sell razors through its own salespeople, a strategy that failed because Gillette didnt have the distribution network available to Japanese companies. It doubled its salespeople and entertained wholesalers. The outcome still has not been decided but Schick has the edge.

Cisco sells an industrial product. Supposedly, it should be able to globalize easily. However, Cisco discovered customer requirements varied from country to country. In Japan, office buildings lack the space for installing electrical equipment; Japanese managers place the routers on office desks. The Japanese also needed smaller routers with noiseless cooling systems that could fit under desks. German customers had specific requirements. French regulators insisted something French be in the product and demanded that Cisco test products at French-based facilities. Twenty-five core categories were finally decided upon for 40 key countries.

Many reasons exist for a standardization strategy. The homogenization of world cultures supports this strategy. Savings in the costs of developing unique products and marketing them and the integration of international markets and the emergence of strong worldwide competition would tend to justify a standardization strategy. Parker Pen provides ample ammunition that the opposite may be just as true. Parker had marketing efforts in 154 countries and traditionally had decentralized operations to the individual countries with more than 40 ad agencies responsible for each niche market they were active in. During the 1980s, a centralization strategy was formulated whereupon all of the countries marketing activities would be brought under a global umbrella and all aspects of the marketing mix would be standardized from headquarters. Parker believed in the globalization gurus, that cultural and competitive differences were less important than the similarities. Parker chose a single ad agency and decided to use the motto, Make your mark with a Parker on a global basis. Graphic layout and photography was identical throughout the world. In the end, the advertising tried to say something to everybody and it didnt say anything to anybody. The disastrous campaign resulted in the sale of the writing division, the resignation of the CEO, and the restoration of the decentralization approach.

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Glocalization A globalization of values is not generally occurring, the opposite appears to be taking place; cultures are diverging in their attitudes while still modernizing. If this is the case, understanding of different cultures will become even more critical to marketers in the years to come. Therefore standardization does not appear to be a realistic strategy in many cases. Yet, the pure adaptation strategy is costly and inefficient. Does a middle ground exist? Yes, a grey area exists between the two extremes--Glocalization.

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GLOCALIZATION
Due to the difficulties that a globalization strategy faces, another term has developed in recent years called Glocalization. Glocalization realizes that perfect standardization at every possible level is practicably impossible due to the constraints discussed above. Instead, glocalization seeks uniformity especially in elements that are strategic such as positioning whereas the tactical approaches are localized. It is a 'think global, act local' strategy. Sony sets the long-term strategy from Tokyo, regional managers make their own product decisions locally. Just as it is not safe to say that all groups of people are the same, consumers are beginning to adopt some of the same lifestyles, but culture and traditional values do not disappear. Marketers must consider these differences when creating effective ads and relevant messages. Camel is a well-known company for its standardized approach. In most countries Camel cigarettes are promoted as a Turkish blend of cigarettes but in Greece, the promotion is changed to an American blend of cigarettes. Camel's global campaign was adapted to different geographic areas: One part of the campaign was based on wilderness, different types of jungle or local wildlife areas according to cultural preferences.

The commercial from Coca Cola that showed 1,000 singing children on a hilltop was edited 21 different ways for broadcast overseas. Coca Cola s award winning commercial with Mean Joe Greene giving his jersey to a young boy who had offered him a bottle of Coke after a tough game could not be used outside of the U.S. since few foreigners understood football nor knew who Joe Greene was. The theme remained but the boy, the language and the star was changed to accommodate local interests: advertisements in South America used popular Argentinean soccer star Diego Maradona and those in Asia used Thai star Niwat. Nike created a worldwide advertising program, which it tailors to each overseas market. The basic ad is "Bo Knows" with Bo Jackson where recognizable players (internationally) exclaim that Bo knows (in local languages without subtitles). Reebok creates different localized commercials for many country markets and even uses different advertising themes.

McDonalds offers a standardized menu but adapts to local environments. A berry-based drink is offered in Brazil; a fruit-based shake is offered in Malaysia, Singapore and Thailand. McDonalds introduced McChao, a Chinese fried rice, in Japan. It also uses mutton pot pies in Australia and McSpaghetti in the Philippines. McDonald's serves coconut, mango, and tropic mint shakes in

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Glocalization Hong Kong. Donald McDonald represents McDonalds in Japan because the Japanese have difficulty pronouncing the letter R. Wendys serves shrimp cake sandwiches in Japan. It adjusted its menu in Quebec to include poutine, a French Canadian dish consisting of fired potatoes covered with cheese curds and brown gravy. Levis allow local manages to make decisions about adapting products to suit local tastes. In Brazil, these decisions involve distribution. There, Levis established a chain of 400 Levis Only stores, many in small, rural markets. These stores accounted for as much as two-thirds of Levis Brazilian sales. James Dean is central figure in all Levis ads in Japan. Indonesia ads show Levi clad teenagers driving around Dubuque, Iowa in 1960s convertibles. Levi's dominates with English language and music. Levis is casual wear in the U.S. while it is upscale fashion statement in Europe. Levi Jeans are made in Japan to satisfy the tighter fit desired by Japanese consumers. Levis developed its Femina jeans featuring curvaceous cuts that provide the ultratight fit traditionally favored by Brazilian women. Campbell's soup is the king of adaptation. Campbell Soup discovered the English prefer a more bitter taste than Americans. The British complained that the soups were too thick (they did not dilute it as they were used to eating the soup without adding water). The Japanese are anti-can (most Japanese walk to the market and dont like to carry heavy cans). Irish and Italians prefer creamy tomato soup, Germans want rice and Colombians want spice. Australians prefer cream of pumpkin soup. Campbell's advertises its fifteen varieties of soup to Argentineans as the Real Soup, stressing its list of fresh ingredients. It advertises to Polish working mothers by emphasizing its convenience. In Poland, Campbell's introduced eight varieties of condensed zupa and flaki, a peppery tripe soup. The average Pole consumes five bowls of soup a weekthree times the American average; 98 percent of Polish soups are homemade. Campbell's sells soup in Mexico in cans large enough to serve four or five because Mexican families are generally large. In Mexico, it sells Crema de Chile Pablano. In China, watercress and duck gizzard soup, scallop broth, radish and carrot soup, and pork, fig and date soups are popular. Campbell's opened the Hong Kong kitchen in 1991 to adapt and create recipes for soup to reach the two billion Asian consumers. The Chinese average one bowl of soup a day, among the highest per capital soup eaters in the world. It offers corn and chicken soup in East Asia. However, dog soup and sharks fin, are out, due to their being endangered species. In Australia's Domino's Pizzas, the favorite pizzas are those with prawns and pineapples. Dominos Pizza in Japan offers such toppings as grilled chicken, spinach, onion, corn, squid, tuna and corn salad. Pizza Hut offers its Japanese customers barbecue chicken, burdock root, potato, and macaroni salad. 16

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PepsiCo created a global brand of Lay's Potato Chips to enter the annual global market of $17 billion. American consumers partake of more than 20 pounds of salty snacks a year, 8 times the world average. Foreign eaters tend to go more for local fare, such as Asian pellet snacks (processed chunks of corn or wheat). After interviewing 100,000 consumers in more than 30 countries in 1995, PepsiCo determined that the potato chip was the most popular snack with a worldwide market of $4 billion. It is marketing all its brands of potato chips under the uniform Lays brand name. It also has installed new equipment to its foreign operations to provide quality and consistency similar to that seen in the U.S. Having a unified brand allows the company to buy raw materials in bulk and will cut costs by more than $200 million per year. Nonetheless, local tastes still differ: in Europe, the most popular flavor for potato chips is salt and vinegar; Poles and Hungarians go for paprika flavoring; in Asia, fish flavors top the list. PepsiCo has a shrimp-chip venture in Korea and a squid-peanut snack for Southeast Asia. PepsiCo introduced cheeseless Cheetos in China because the Chinese do not like cheese; 100 million bags were sold in 1995. PepsiCo has launched a seafood-flavored cheetos and is planning to build a new $30 million plant in China to meet the growing demand.

Unilevers TV commercials for Dove used the same theme and were identical but the actors were local as was the language used. Mars abandoned successful European brand names in the pursuit of standardized global brands: Raider was renamed Twix; Britains Marathon became Snickers and Frances Bonitos became M&M. Unfortunately the path is not as easy with Milky Way and Mars. Both are sold worldwide but they refer to different products in different countries. In the U.S., Milky Way has caramel and chocolate, in Europe it has no caramel while the European version of the Mars bar has no almond. Europeans view peanuts as something you feed horses. To them, Hershey chocolate bars taste bitter. Some products have certain core technologies, subassemblies or components that can be standardized on a worldwide basis, while other parts require adaptation to local conditions. Whirlpool washing machines sold in Europe or the United States were not suited to wash the traditional saris worn by Indian women. Whirlpool, in response, created a Western style automatic washing machine that is compact enough to fit into Indian homes and that incorporate specifically designed agitators that will not tangle saris. These handle only half (11 pounds) the capacity of the typical U.S. model. Most of the rest of the machine is built from standardized components.

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Glocalization Whirlpool has designed a World Washer, a small stripped down automatic washing machine targeted to meet the needs of developing nations such as Brazil, Mexico and India. This, although being a standardized product, must be customized as local needs arise. Whirlpool must have regional manufacturing centers due to varying size and varying consumer preferences around the world. Even though the features, dimensions and configurations of machines may vary from market to market (French want top loading washing machines, British want front loading ones. Germans want high speed machines while Italians prefer slower spin speeds), much of the technology and manufacturing processes involved are similar. Even though the products that come out of the Italian and German plans are totally different, the insides don't vary and both can be standardized and simplified into a common platform. Glocalization, therefore, is the use of a global theme with the adaptation as necessary around the globe to accommodate local tastes and requirements.

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TAILORING PROGRAMS TO LOCAL MARKET PRODUCT MODIFICATION

Product is anything that can be offered to a market to satisfy a want or need. Products that are marketed include physical goods, services, experiences, events, persons, places, properties, organizations, information and ideas. - Philip. Kotler A product has three major elements: the core product, the physical entity; the tangible product (packaging, brand name, features, quality, and styling); and the augmented product (installation, delivery and credit, training, after sale service, warranty).

The first decision to be made in drawing up plans for international markets is whether, and how far, to design and adapt products to different usage and environmental conditions in other countries. Modifying products to different market environment and usage conditions can entail, however, substantial costs, as well as incurring delays in market entry and penetration. It eliminates and reduces the potential for spreading product R&D and design costs and overheads over multiple country markets. The costs of adapting or modifying products, therefore, have to be weighed against the likelihood of greater market penetration as a result of product adaptation.

In some instances, products are deliberately not adapted, as a lack of adaptation generates a prestigious image. For example, large luxury U.S. automobiles with high fuel consumption, such as Cadillac, although ill adapted to narrower European streets, have a prestige value in Europe by virtue of their lack of adaptation and the implied costs of maintaining and using such automobiles, given higher fuel costs in Europe. Similarly, in Japan, it is prestigious to own a car with a steering wheel on the left, as the car has obviously been imported. Gillette often has to sell the idea of shaving before it can sell its blades. In some countries, facial hair is removed with a machete or a sharp edge of glass. To persuade these men that shaving can be easier and more comfortable (without losing its macho qualities), Gillette sends a van from village to village carrying its salesmen and equipped with all the essentials. (Free razors are given; however in classic Gillette fashion, blades must be purchased.) In those cases where shaving is common, other factors (primarily economic) take precedence. To counter the discovery that few 19

Glocalization Mexican men who shave used shaving cream, Gillette introduced plastic tubes of shaving cream that sold for half the price of its aerosol. The product Prestobarba (Spanish for quick shave) was an instant success. Automobile styling shows distinctly cultural patterns. German taste is rooted in nature and its slow changes and enduring quality. Thus Mercedes designs change slowly and must be carefully balanced to last as long as they do. Nothing stands out on a Mercedes. All elements are carefully balanced. Conversely, the Japanese tend to put their cars in front of a wall whereas Westerners are apt to use nature as a backdrop. In Japans tight streets, cars are most often viewed in close-up, thus the Japanese like ornament and creases to entertain the eye when viewing the car in segments; Americans design their cars to look their best from 20 to 30 feet away, it is the whole picture rather than details which is desired. When Westerners conjure up an image of a car, it is from the side view. With the Japanese, it is frontal. The Japanese read personality and expression into the face of the car. Their concerns are whether the eyes are too sleepy or awake and whether the mouth is appropriate. (a reference to shape and size of headlights and grill). Westerners are drawn to a muscular smoothness in cars while the Japanese reject animalist traits in their car and cannot accept the Western worlds attraction to leather.

Japanese companies historically launch multitudes of new products and use the consumer marketplace in total as their test market; if it succeeds, they make more of it, if it fails, it is dropped. Coca-Cola, as would many Western companies, stay with a product and try to make a go of it, fearing bad public relations if it were to acknowledge defeat: In the 1960s, a fortified tomato juice called VI-ProMin was kept on the shelves for several years without success. After finally Japanizing, the company is now releasing as many as 50 new beverages annually with launch time as little as thirty days. The company has learned to get in and get out of the Japanese market with ease and to shrug off the inevitable failures: it launched a lactic-based drink called Ambasa Whitewater that initially sold millions of cases but faded after 18 months and was then pulled off the shelves.

PRODUCT STANDARDS AND REGULATIONS

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In some cases, products have to be modified to conform to national product regulations and quality standards. Such regulations are most common in relation to products such as pharmaceuticals, food, electrical appliances, and automobiles. The International Organization of Standards has also developed a set of quality management standards, ISO 9000, which are required of suppliers by a growing number of firms such as DuPont, General Electric, British Telecom, and Philips Electronics. Products that involve potential safety hazards, like electrical appliances or clothing, also often have to meet safety regulations. In some instances, product regulation may prevent a product from entering a specific national market. The antipollution requirements for automobiles in the United States, for example, have blocked such European sports cars as the Morgan or the Lotus from competing in the U.S, market. Similarly, the introduction of tighter European standards for pharmaceuticals has blocked the expansion of Indian drug manufacturers in these markets. CLIMATIC AND USAGE CONDITIONS Products also often need to be modified in order to operate effectively under different environmental or climatic conditions. Construction materials such as bricks and cement have to be reformulated for the Middle East to prevent drying out and cracking. Trucks, automobiles, machinery, and other types of equipment may also need modification to deal with differences in the physical infrastructure, such as unpaved roads, power fluctuations, and shortages. Trucks and automobiles may need structural reinforcement to cope with poor road conditions in countries such as India or Eastern Europe.

Products may also need modifications for usage conditions in different countries. For example, modifications in size may be necessary due to differences in space available in homes, or retail store outlets, or in purchasing frequency and purchasing power. In many Asian countries small compact package sizes in items such as detergents, soap, and shampoo are popular. Unilever, for example, sells a 50 ml size bottle of its Sunsilk shampoo and 75 grams bars of Lifebouy and Lux soap in India, as higher priced brands are used less frequently and saved for special occasions. In Japan, P&G had to make its Pampers diapers thinner. Japanese mothers change babies diapers about 14 times a day- more than twice as often as most U.S. mothers. Consequently, they wanted a less bulky diaper that could be stored more easily in the limited storage place available in the average Japanese home.

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FEATURES AND SPECIFICATIONS Features are a combination of attributes. Some of the important attributes include dimensions, size, capacity, and volume. Different physical characteristics of consumers often influence product designs. GE Medical Systems designed a product specifically for Japan; the unit is smaller because Japanese hospitals are smaller and the typical Japanese patient is smaller. Swiss watchmakers make smaller watches for Japanese consumers, reflecting the fact their wrists are smaller than most Westerners. Although Germans buy over 500,000 pairs of cowboy boots annually, U.S. companies get little of the business: toes in U.S. boots are not pointy enough and American heels are perceived to be too wide. Non-American shoe manufacturers have also had to reciprocate to be successful in the U.S.

Local cultural tastes often have forced many international companies to modify components if not the entire product to be successful. Italians dislike grapefruit-flavored Gatorade while Germans love it. Many Europeans think Hershey chocolate bars taste bitter. Heinz modifies its ketchup by adding spices, curry, peppers, depending upon the local market tastes. Heinz developed a special line of rice based baby foods for the Chinese market and a fruit based drink for children called Frutsi for the Mexican market. General Foods blends different coffees for the British (who drink their coffee with milk), French (who drink their coffee black), and Latin Americans (who prefer a chicory taste). Nestle and Coca Cola entered a joint venture to convince Koreans that canned coffee (warm or cold) is an alternative to soft drinks. Two versions were introduced: rich and regular (milkier). Coke already has its Georgia brand and Nestle has Nescafe canned coffee drinks in Japan. Koreans drink only one-fourth of the Coffee Japanese do. Nestle tried to sell instant coffee to England; they found that most Englishmen prefer a light, almost blond coffee; as their coffee habits had been developed during Second World War and heavily influenced by American troops, their taste in coffee is similar to that of Americans.

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Glocalization Sometimes the taste is unknown and must be acquired. In this case, often a major educational effort is needed. Heinz is teaching the rest of the world how to use ketchup. Heinz also sponsors cooking lessons in Tokyo to Japanese homemakers on using ketchup as an ingredient in Western style foods such as omelets, sausages, and pasta. Americans prefer relatively sweet ketchup but Europeans prefer a spicier, more piquant variety.

Adaptation sometimes is necessary to succeed. In Britain, questions on cricket are preferred to that of baseball. The French love questions on nightlife, art, and literature. The Blue Diamond brand of almonds was an unknown commodity until Blue Diamond launched its campaign of exotic new almond based products that catered to local tastes: almond tofu, almond miso soup, and Calmond, a nutritional snack concocted from a mixture of dried small sardines and slivered almonds. Television ads featured educational messages on how to use almonds in cooking, the nutritional values. Japan is now the largest importer of Almonds. Blue Diamond exports to over 100 countries and assumes no two markets will react the same. For most Westerners, milk-based products are usually consumed at meals and bedtime for their sleep inducing, soothing, relaxing properties. In Thailand, the same products are consumed on the way to work and often away from home for their invigorating, energizing, stimulating properties. In the UK and Holland, people prefer tablets while in France suppositories are preferred and in Germany, an injection will do.

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BRANDS

The American Marketing Association defines a brand as: a name, term, symbol, or design, or a combination of them, intended to identify the goods or services of the seller or group of sellers and to differentiate them from those of competitors.

A brand is a complex symbol that can convey up to 6 levels of meaning: 1. Attributes: A brand brings to mind certain attributes. Mercedes suggests expensive, well built, well engineered, durable, high prestige automobiles. 2. Benefits: Attributes must be translated in to functional and emotional benefits. The attribute durable could translate into the functional benefit I wont have to buy another car for several years. The attribute expensive translates in to the emotional benefit The car makes me feel important and admired. 3. Values: The brand also says something about the producers value. Mercedes stands for high performance, safety and prestige. 4. Culture: The brand may represent a certain culture. The Mercedes represent German culture: organized, efficient, high quality. 5. Personality: The brand can project a certain personality. Mercedes may suggest a nononsense boss (person), a reigning lion (animal), or an austere palace (object). 6. User: The brand suggests the kind of consumer who buys or uses the product. We would expect to see a 55-year-old top executive behind the wheel of a Mercedes, not a 20-year-old secretary. Brands have staying power due to the promotional efforts expended by companies to create awareness and image for their brands. Standardization of both the product and brand are not necessarily consistent; a regional brand may have local features or a highly standardized brand may have local brand names. As a result of separate marketing, Unilever sells a cleaning liquid called Vif in Switzerland, Viss in Germany, Jif in Britain and Greece, and Cif in France; it would be very difficult to standardize the brand name for all European markets since each brand name is well established in each local market.

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Glocalization Brand names often are difficult to standardize on a global basis. Johnsons Pledge furniture cleaner is called Pronto in Switzerland and Pliz in France while retaining its American brand name in the U.K. Translation problems could render the translated version obscene or with a negative connotation (local slang or idioms). The brand name could already have been registered with another local or international company. Yet, many brand names are worth their weight in gold. Anyones list of the top ten global brands would have many of the same companies: Coca-Cola, Sony, Kodak, Disney, Nestle, Toyota, McDonalds, IBM, Pepsi-Cola. Global brands carry instant recognition and especially for international travelers represent a risk avoidance strategy versus using local brands. European consumers buy American, for its quality, prestige, and American image. Goodyear sells its tires in Germany with images of Indy Cars. Budweiser has made a name for itself as a premium brand with an American ad campaign. European teenagers wear baseball caps (backwards of course) and Football jackets over their basketball t-shirts. The Japanese lean towards pastoral names or names of girls for their car models: Bluebird, Bluebonnet, Sunny, Violet, Gloria versus animals and power names for American car models: Mustang, Cougar, Cutlass. The first sports car Nissan sent to the United States was named Datsun Fair Lady. However, branding is not a guarantee for success in the global market.

The UK chocolate company Thorntons experienced difficulties in France. Cadbury followed a fragmented branding approach, retaining the brand names on the various companies it has acquired in Europe. Coca Cola uses Coke Lite as a brand name instead of Diet Coke in France since the term diet is restricted due to medical connotations and suggests poor health. Coca Cola changed Diet Coke to Coke Light in Japan; Japanese women do not like to admit to dieting and in Japan, the idea of diet implies sickness or medicine. Other name changes are not necessarily voluntary: In India, because of a ban on the use of foreign brand names, hybrid brand names are the norm: Maruti-Suzuki, Dcm-Toyota, Kinetic-Honda, Lehar-Pepsi.

The Japanese worship brand names, the perfect solution in a society where individual preference is muted. As soon as consumers are confident the logo means status or prestige, they will snap up anything that sports the reassuring logo. The Japanese have taken this fanaticism a step further. They do not rush out and buy just any recognizable brand; they buy catalogs filled with photographs of accepted brand products. Before making a purchase, many consumers must consult a reference work to guarantee its prestige. Different reasons for this brand loyalty exist according to age groups. The main reason the older Japanese rely heavily on brand names is that in their

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Glocalization formative years (during The Second World War and the years of postwar poverty) goods were scarce and few opportunities existed; being unsure of exactly what they wanted, they opted for the safety of a famous name. The youth tend to prefer brand names because of their fashion consciousness. Consumers associate product quality, safety, and reliability with the image of the company that produces it. They need to see the company as trustworthy and reliable in order to evaluate a brand favorably.

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PACKAGING

Packaging is defined as all the activities of designing and producing the container for a product. -Philip. Kotler Typically, package labeling and assembly or usage instructions need to be transported into the local languages, especially where there are dosage or usage instructions. Where sales volume is low, a firm may adapt such simple solutions as pasting on a label with appropriate instructions, or including a translation with the standard labeling. Visual directions have also been utilized. Ikea, for example, provides visual directions for the assembly of its furniture. In addition, a firm must pay attention to the symbolism associated with packaging and language. In some instances, use of foreign language carries a prestige or quality connotation, such as French or Italian for perfume, clothing, or accessories. Colour associations also may trigger a need for modification. Green, for example, has negative connotations in a number of South East Asian countries; it symbolizes danger in Malaysia. Consequently, it is rarely an appropriate colour for packaging. Similarly, yellow may arouse superstitions and needs to be avoided in certain markets.

Packaging considerations depend upon the market for the product: in the case of a product targeted at businesses, packaging is usually plain and brand and functional in nature (safety, security, and delivery functions). For consumer products, the packaging becomes part of the promotional effort. As industrial products are far less culturally grounded, the majority of discussion will deal with consumer products. Yet consumer products can be marketed by self-service or by over-the-counter.

Packaging considerations include size of package (a 3-liter bottle of cola does not sell well in Japan with their small homes and even smaller refrigerators; similarly the Dutch prefer to shop daily for fresh items and prefer small packages), material used for the package, number of units within the package (the Japanese word for four sounds like the word for death; products grouped in fours, therefore, dont sell well in Japan), colors (yellow flowers used in a trademark were rejected in Mexico where a yellow flower symbolizes death or disrespect) and labeling on the package. The latter must involve itself with language, aesthetics, size, content reporting, shipping, distribution, 27

Glocalization and government requirements. For example, Bilingual packaging requirements exist in Canada (French and English), Belgium (French and Flemish), and Finland (Finnish and Swedish).

Government requirements can also greatly influence the products final design. U.S. law levies taxes on certain chemicals destined for toxic waste dumps. A law in Denmark requires that drinks be sold in refillable bottles. Canadian regulation requires deposits on beer bottles. German law requires that at most 28% of all beer and soft drink containers can be disposable. The law also insists that companies collect their used packaging for recycling. In Australia, the number of cigarettes contained in a package must be printed on the package front. In Saudi Arabia, product names must be specific. Prices are required to be printed on the labels in Venezuela but in Chile it is illegal to put prices on labels or in any way suggest retail prices that should be changed.

Packaging can become an integral part of a products success or failure. Legos Bunny Set promotion, where the block toys reside in a storage case in the shape of a bunnyfailed to impress the Japanese. The Japanese considered the bunny pack as superfluous and objected to the notion of being forced to waste money on unwanted products.

In France, local Amora ketchup overtook Heinz by introducing plastic bottles resembling rocket ships, a move Heinz matched. In Panama, Aunt Jemima pancake mix and Ritz Crackers are sold in cans rather than in boxes because of the high humidity. Gillette sells Silkience shampoo in one-half ounce plastic bubbles in Latin America; it sells Right Guard deodorant in plastic squeeze bottles, the poor mans aerosol. Whereas, Americans prefer to buy mayonnaise and mustard in glass containers, consumers in Germany and Switzerland buy these same products in tubes. Consumer image of packaging differs across cultures. Packaging may not even exist in developing or undeveloped countries. In 1991, Andersen Consulting assisted the Moscow Bread Company in improving its distribution of bread in Moscow. They found as much as one-third of the bread was wasted. The consultants recommended plastic bags as a means of keeping the bread fresh, a novel idea at the time. Although 95 percent of the food is packaged in developed countries, only 2 percent was packaged in the former Soviet Union. Russian consumers responded well, the bags not only guaranteed freshness and extended the shelf life of their bread but the bags created utility in that it represented a reusable gift.

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Glocalization Companies that sell brand name packages are beginning to use symbols and not words on their labels. Frango Chocolates (candy sold by Marshall Fields in Chicago) did not go over well in Portugal: Frango means Chicken; the company consequently began using a symbol. When Scott Paper Products (Scott towels) are sold overseas, they feature a symbolic icon a towel and arrow that suggests absorption. However, symbols too can have translation problems: Always packages feature a dove, in the U.S. it symbolizes peace and serenity; in Japan, however, the dove is the symbol of death. The Swastika is associated with Nazi Germany for most Western societies, thus it is a negative image; however in many Asian societies, it is a sign of good luck and perfectly acceptable to have on a package. Gerber found out the hard way that in low literacy countries pictures and symbols are taken literally when they introduced baby food in jars to Africa with its standard picture of a baby on the label; the mostly uneducated consumers thought the jars contained ground-up babies. Marketers should avoid using triangular shapes in Hong Kong, Korea or Taiwan, as the triangle is considered a negative shape in those countries. Japanese consumers also place heavy emphasis on the packaging and overall appearance of products. The product must be wrapped and tied in the right way. Specific kinds of strings must be used for specific items; the presentation is as important as the event itself. The typical Japanese consumer will not purchase a product that is not well wrapped; a poorly packaged product conveys an impression of poor quality. To the Japanese, form is as important as function. Packaging must be beautiful and of high quality; it is expected to be aesthetically pleasing as well as functional. Packaging paper used for wrapping and bags are of excellent quality, and wrapping an item in three layers is standard practice. Lever Brothers sells Lux soap in stylish boxes because more than half of all soap cakes purchases in Japan are purchased during the two gift giving seasons. The packaging, how you give the message, the execution cannot be overemphasized. The Japanese feel that if you do not go to the trouble of presenting your ideas properly, how can they be any good?

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ADVERTISING
Advertising is any paid form of non personal presentation and promotion of ideas, goods or services by an identified sponsor. -Philip. Kotler The globalization of economies and trade intensification lead companies to communicate with consumers of different languages and cultures. The general framework for localizing advertising would be that of communication and marketing strategies adopted by multinational companies especially French multinationals. The debate between the upholders of global standardization and those of local adaptation is still open and will likely stay that way as long as the Earth is teeming with different languages and cultures. Nevertheless, the elements of this debate should be defined and elucidated briefly. International advertising consists of using the same strategy of communication in all targeted countries. The advantage of this approach lies mainly in the economies of scale generated because of the standardization of the campaign. One may add the relatively scarce numbers of brilliant ideas in the field of communication and thus it is easy to understand why companies tend, in their vast majority, to this type of standardized strategy. But it is also obvious that the risks of a forced standardization are not insignificant. The relevance and the influence of the local culture are still very substantial in numerous countries around the globe including in Western Europe. It is indeed very risky not to adapt communication to some local markets especially in countries where the cultural tradition is still very present. Faced with a potential failure, which can have serious sequels financially speaking, the trend towards localization is gradually gaining ground. But what does it really entail in the advertising field? Localization of international advertising campaigns consists of adapting the company's communication to the specificities of the local environment of the hosting countries targeted by the campaign. This local environment could be divided in several components to which the localizing translator must pay careful attention:

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Glocalization The socio-cultural component: which includes the local particularities stemming from religion, mores, social and commercial habits, rules of conduct and ethical norms. In short, this component is related to the main features of the hosting culture and society. The political-legal component: which includes the local particularities stemming from the nature of the political system, the stage of opening onto the world, the restrictions imposed on advertisements and the regulations related to information and to certain products (such as spirits and tobacco). The localization of advertising campaigns consists of adapting the company's communication while taking into account the above-mentioned parameters. The relevance and influence of these parameters are certainly varied according to regions and countries but overlooking them leads undoubtedly to the failure of the campaign. Communications strategy and promotional tactics often need to be tailored to specific foreign markets or countries. Choice of media may be changed to reach the desired target market as a result of differences in the availability and reach of various media. For example, in relaunching Coke in India in 1993, Coca-Cola used a dramatically different type of campaign from its usual heavy TV advertising approach, since TV ownership is relatively low in India. Instead, heavy emphasis was made on signage and outdoor display. The launch took place in Agra, the site of the Taj Mahal. On the first day of the launch, a cavalcade of trucks, specially designed three-wheeler vans, tricycles, and handcarts flooded the streets of Agra, with horns blaring to announce the second coming of Coke. The trucks had dynamic digital displays on each side, alternatively showing the Taj Mahal and the Coca-Cola logo, while the tricycles had huge red Coca-Cola umbrellas. At the same time, messengers on motorbikes sped to bazaars in various parts of the city, releasing red balloons to announce that the Coke bottles would shortly be arriving. Retailers were provided with special display racks for Coke bottles, as well as specially designed iceboxes to keep Coke bottles cold. In other cities in India, Coke made extensive use of outdoor advertising and signage. In Mumbai, it developed 3-D neon hoardings for the metro, as well as digital hoardings for its trucks and dynamic display boards for small retail outlets. This was backed by the TV launch commercial, Share my Dream, Share my Coca-Cola based on a 1971 commercial first used in Spain but adapted to the Indian launch using Indian models. Advertising is the most widely used promotional tool. Mass media advertising is especially effective when marketing consumer products. It is not unusual for consumer product firms such as

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Glocalization Proctor & Gamble or Unilever to spend ten percent or more of their revenues annually on mass media advertising. The multi-billion dollar commercial television market is funded entirely on mass media advertising. In the United States, entire industries rely upon advertising. Advertising expenditures in developing countries such as India and China have increased significantly and will increase much more so in the near future as such countries continue industrializing.

Advertising is used to pave the way for the sales force, to gain distribution, improve brand image, and create goodwill for the company. Advertising has four basic features: it is a paid presentation; it is a non-personal presentation; it promotes specific ideas, goods, or services through the mass media channels of communications designed to reach the general public (including but not limited to television, radio, newspapers, magazines, and billboards); and it must identify its sponsor, the individual or organization that pays for the advertisement. Advertisers must know who their customers are likely to be, develop effective communications with those customers, be aware of the constraints that affect the communication, use creativity to prepare the message they want to communicate, send it through the proper channels and combine all these steps into an advertising campaign. In every country, advertising is just one element of the marketing mix; its role depends upon the use of and preference toward the other elements of the mix within a country. Yet, advertising and promotion, is not only the most visible but the most culture-bound of the firms marketing functions.

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Standardization of Advertisements: A standardized advertisement is an advertisement that is used internationally with virtually no change in its theme, copy, or illustration, except for translation when needed. Standardized advertising strategy becomes impossible if: 1) Various national markets are in different stages of maturity 2) The idea depends on a large budget, which is unsupportable in some markets 3) If it defies local customs and regulations or ignores the efforts of its competition. Standardization is easier for new products. Products suitable for standardization include products for which audiences are essentially similar (Urban, Elite, Teens) and those products that can be promoted via image campaigns (Luxury products and High-tech products). The visual element in an advertisement is the element most amenable to standardization across cultures. John Deere promotes its products with a globalized single strategy advertising campaign because the nature of the product, the tractor, is such that it perceived similarly in nearly all markets. English-language ads are quite common throughout the world, especially in Europe and Latin America, sometimes with full text, other times with only English brand name with the main information in the local language or even the two languages combined. In an effort to standardize, Levi Strauss uses the sublingual; using 1960s rock music and nonspeaking actors in often amusing situations to promote the rugged American virtues of its jeans. Similarly, Levis overcame Europes obstacle of many languages by creating advertisements that consisted solely of visuals and music without any language references.

MTV Europe has 200 advertisers almost all of whom run unified English language campaigns across its 28 nation broadcast areas. However much as MTV wishes to standardize, laws force them to adapt: MTV Europe is required to black out pan-European low alcohol beer commercials in Norway, which prohibits them. In Poland, commercials lyrics must be sung only in Polish. Campaigns beamed to Brazil must be modified to include local content. Australia prohibits all imported advertising so advertisers have to reshoot commercials with Australian film crews and actors.

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Glocalization Yet, pure standardization is rarely utilized. McDonalds utilizes a global strategy by offering its basic product line to all markets and consumers yet adapts its line to suit tastes and preferences as required. Coca Colas classic children on a hilltop commercial was edited 21 different ways for broadcast overseas. Coca-Colas theme of: Cant beat the feeling is the equivalent of I Feel Coke in Japan, Unique Sensation in Italy and the Feeling of Life in Chile. Messages must be adapted according to local culture. To attempt to force standardized messages onto unreceptive audiences will only result in failure. Japanese advertisers suggest instead of persuade, vague and indirect messages are used. Comparative ads in Japan are not considered good taste and testimonials are seen as pushy and phony. Cheer detergent was initially advertised in Japan using slice-of-life television commercials similar to those used in the U.S.; these ads were found to be among the most hated in Japan. The campaign was quickly replaced with a new series using a famous sumo wrestler as spokesperson. Commercials in other countries had to be 29, not 30 seconds in length because some countries wanted one second of silence at the beginning of the ad. Try as they may, adaptation becomes imperative.

Use of other sales promotional tools, such as coupons, gifts, and games, is restricted in a number of countries in order to ensure fair competition and protect consumers. For example, while in the United States coupons are a major form of sales promotion for consumer goods, they are banned in Austria, Germany, and Greece. Premiums and gifts are also limited in a number of countries. In France and Greece, for example, they must be limited to 5% of product value, and in Italy to 8%. Again such restrictions imply that sales promotion tactics need to be tailored to specific countries, and that opportunities to standardize sales promotion techniques across markets are limited. Responsibility for sales promotion is typically given to local management.

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Glocalization CULTURAL INFLUENCES ON ADVERTISING The way cultures react to communications and messages differ. Advertisers that understand these differences succeed. Those that ignore them fail. Korea is a word-of-mouth advertising country: a customers testimony is more effective than television or newspaper advertising, Koreans value the testimony of a friend, family member, or opinion leader. Likewise, Chinese consumers tend to rely more on word of mouth communications, the concept of family is important to Chinese and thus played up in advertisements. The content of ads within a society mirrors that of the society: ads in countries high in collectivism contain more group-oriented situations than found in individualistic societies. Indian visuals contain a disproportionately high percentage of children; France uses the aesthetic visual proportionally higher, Korea includes the price 38 percent of the time while other countries do so less than one-fifth of the time; the U.S. has five to ten times more comparative advertising. Obviously, these differences reflect cultural differences between countries.

Nonverbal or visual advertising is most likely to satisfy a companys global market objectives. However, it should be noted that body motions are interpreted differently among cultures. In Japan, pointing to ones own chest with a forefinger indicates that the person wants a bath. In India, kissing is considered offensive and not seen on television, in movies, or in public places. Symbols are not universal: snakes symbolize danger in Sweden while they represent wisdom in Korea.

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Glocalization OTHER FORMS OF MEDIA The availability of other forms of media is another concern that marketers need to take into account before engaging in global advertising. In many parts of rural India, television does not exist. The only forms of advertising are ambulant theaters that show movies from village to village. In India, Wilkinson uses puppet shows. Southern and Western Europeans like to watch TV while in north and central Europe, radio is the most important medium. Newspapers are popular in Scandinavia and Germany (70 percent) whereas only 15 percent read a paper in Portugal.

The average Japanese consumer is an avid television watcher and newspaper reader. The fold-in advertisement for newspapers (orikomi) is widely used. This allows even small stores to advertise to a limited area with a minimum outlay. Transit advertisements are printed advertisements that are displayed in public transportation such as railway cars and buses; they are very common in Japan because of the high reliance on public transportation and the long commutes for the typical worker. Major users of transit advertising include magazines and publishing companies, food companies, major retailers, cosmetic companies, and hotels and restaurants. In Japan, over 200 new magazines are started annually, and more than half of these are either fashion-oriented or related to consumer life. Japanese magazine advertising is more informative in nature. Because the themes of these publications provide psychographic information, it is possible for manufacturers and suppliers to utilize them strategically besides simply advertising in them. Newsweek successfully launched a Japanese version in 1986; its 150,000 copies sold out immediately, and numbers continue to grow. The Japanese version presented to readers a comprehensive international news magazine that took stories mainly from the U.S. domestic edition and placed emphasis on international news; the main target was intelligent, businessoriented, white-collar workers, with business managers and college students secondary. In Mexico, billboards are effective and efficient advertising media, especially in crowded cities. With traffic clogged main arteries with slow moving traffic at nearly all hours of the day, billboards provide a large captive audience. Mexicans also enjoy being outside and are considerably more than Americans. Rather than 2 percent of all spending by smaller and localized users, as in the U.S., outside advertising represents about 5 percent of advertising spending with usage by all sizes of companies. Outdoor advertising is prevalent throughout Eastern Europe.

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Glocalization Interestingly, since car ownership was relatively low, most billboards were positioned to reach pedestrians rather than motorists. Hundreds of hours of infomercials hit the airways weekly throughout Asia. These program length advertisements feature celebrity endorsements and demonstrations of products. In Britain, certain taxicabs are painted completed with advertisements, interiors as well; the cab driver is given $3,000 in exchange for driving these corporate colors throughout the country for a year. Meanwhile in Turkey, some buses are encompassed completed by advertisements. Throughout Europe, commuter trains are also being plastered, legitimately, with ads complementing the print campaigns of brands. LANGUAGE AND LITERACY Language and literacy are clearly important factors in developing promotional materials for international markets, especially where the message has a substantial informational component. The firm needs to exercise care in translation, to ensure the appropriate meaning or message is conveyed effectively. Often, a literal translation of a slogan or theme will run into difficulties. In Poland, for example, translation of ads for Milky Way Candy bars and Persil were said to be so literal they did not make sense. In the case of TV and Cinema, language poses less of an issue, since sound tracks can be dubbed or, in some instances, multiple sound tracks utilized. Gillette is big on globalization but its standard Gillette, the best a man can get campaign had to be modified in France. The slogan there was la perfection, au masculine, meaning perfection, male style. The change was necessary because the word perfection in France takes the feminine article (la) and could not be used by itself.

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Conclusion
Advertising is a key tool in international marketing. It involves a significant commitment of funds, it represents the sole international representative for many companies, and it is required to accurately position the product as desired for multinational companies. For an advertisement for foreign markets to succeed: The message must be meaningful in terms of the experience of the people; The message must appeal to some responsive chord among the desires and ambitions of the targeted audience; and The message must not offend sensitivities. When advertising cross-culturally, the following must be adhered to: Understand local regulations and their effect upon advertising. Do not assume because a commercial appeals at home it will also appeal to foreigners with equal effectiveness Create a global theme but localize to particular markets as necessary. Thoroughly do the research to minimize potential translation and usage problems. As advertising objectives vary from market to market, customize objectives for each target market designated and do so with the culture in mind. Clearly designate the target audience within the target market. Examine media alternatives and availability within the target market. Review local agency availability and capabilities. Hire a native speaker to translate the advertising message.

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PRICING
Price is the one element of the marketing mix that produces revenue, the other elements produce costs. -Philip. Kotler Differences in price sensitivity, customers ability to pay, and competition from one market or geographic area to another suggest that market penetration and profits will be maximized by adjusting prices to local demand conditions. The price of McDonalds Big Mac, for example, varies considerably from one country to another. In 1994, the price ranged from $1.03 in China to $3.96 in Switzerland. McDonalds aims to target a broad based market in all countries and works to hold down costs to ensure that the Big Mac is within the reach of the average local consumer. In 1992, when the Russian government imposed a sales tax, McDonalds (Moscow) reduce prices by 28% to maintain its position as a popular priced restaurant. Income levels vary from one region of the world to another and impact consumers ability to pay. In particular, in developing countries, low-income levels may limit the potential market for consumer durables to a relatively small number of upper-income customers. For example, in India, the market for many products such as washing machines, colour TVs, radios, and toilet soap and laundry detergents is limited to 300 million middle-class consumers. Nestle estimates that the market for rice noodles, ketchup, and instant coffee brands is 100 million, and Bausch and Lomb believes that 30 to 50 million Indians can afford soft contact lenses. Management also has to consider cost factors in making pricing decisions, since in the long run prices have to cover production, distribution and promotional expenses. The nature of these costs will vary, depending on where production is located- in the domestic market or in the foreign market. Where production is located in the domestic market and the product or service is exported, the costs of shipping, packaging, insurance, and processing documentation for foreign markets have to be assessed. The firm must evaluate tariffs, customs and other import duties, and local inventory management and storage costs.

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COUNTRY OF ORIGIN EFFECT

The country-of-origin effect is any influence that the country of manufacturer has on a consumers positive or negative perception of a product. The country, the type of product, and the image of the company and its brand influence the magnitude of the effect upon the global consumer. This effect does exist. Industrialized countries generally have the highest quality image. The Plymouth Laser and the Mitsubishi Eclipse are identical sport coupes built by Diamondstar Motors. The cars sell for approximately the same amount. However, Eclipses outsold the Laser and the Eclipses always received higher customer satisfaction ratings. The bottom line is that people perceive that the Japanese car is of better quality than an equivalent American car.

This effect can also potentially cause the near extinction of local brands if they are deemed inferior. American and European consumer products have become so popular in China that they have eclipsed their Chinese counterparts. China has launched a buy Chinese campaign. Beijing is starting to demand foreign companies maintain the Chinese product lines they acquire instead of flooding the market with Western versions of the same product.

Consumers have vague but definite stereotypes associated with various countries and products. Scotland is associated with Scotch; France with Perfume, Wine and Cheese; Italy with pasta; and America for Cigarettes. Marlboro gains from its recognition as an American cigarette while Chanel No 5 gains by being a French perfume and Johnny Walker a Scotch Whiskey. An Italian Whiskey or German Wine or Scotch perfume would be negatively influenced by the effect. Made in England is more favorably perceived by the French than Made in U.S.A. Made in Germany products are more highly regarded by American than French consumers. In countries where ones image is high, a premium price may be charged.

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Typical Japanese consumers have an ethnocentric attitude. Oftentimes they quickly reject foreignmade items, regardless of quality, in favor of locally manufactured goods. However, foreign products are thought to be appealing in terms of design and individuality. The European image is represented by Mercedes Benz and Wedgwood. The American image is represented by colas, jeans, cigarettes, and chain restaurants. Most Japanese have an exotic image of foreign goods but still distrust products not made in Japan. As more Japanese travelers are introduced to foreign products, they tend to return home demanding these items. The marketing strategy of most foreign companies in Japan is to get away from the image of foreignness through localized advertising and to have their products seen as Japanese products. Ads for Coca-Cola and McDonald's successfully use this Japanese imagery. A reverse ethnocentric effect occurs as well: at the Moscow Pizza Hut, consumers did not purchase the Moscva Seafood pizza with sardines and salmon: they did not want a seemingly domestic product (if it is their own, it must be bad.)

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UNDERSTANDING CULTURE (In Indian Context)

Culture can be looked upon as a set of traditional beliefs and values that are shared and transmitted in a given society. It also represents the way of life and thinking patterns that are passed on from one generation to the next. Culture encompasses norms, values, customs, art, morals and laws.

Culture is prescriptive. It prescribes the kind of behaviour that is acceptable in a society. It is socially shared through interaction. It facilitates communication as it develops common habits of thought and feelings among people. Culture is gradually learned, as a person absorbs the values and traditions in which he is raised. It is subjective and people of different cultures have different ideas about the same subject. It is enduring as it is passed on from generation to generation. It is relatively stable and somewhat permanent. It is cumulative as it is based on hundreds or even thousands of years of accumulated experiences. Culture is dynamic. It adapts to new situations and sources of knowledge.

MARKETING STRATEGIES TO BE FOLLOWED FOR CROSS CULTURAL BUSINESS Since language is the most compact way of communicating, MNCs should learn the typical words, their meaning and usage of the local language. Language, if properly used, consumer of any country could be made at ease with the foreign product. Next area in which marketing strategy will differ is consumption pattern. For example, French men are very liberal in using cosmetics, may be more than his female counterpart. Although India is a hot and humid country, people still prefer to use more of talcum powder as prevention against sweat than deodorant. International marketer will also have to be aware of the fact that opportunity to sell to different market segment will also vary from country to country. Market segmentation on the basis of economic status, age, gender, qualification will vary drastically between two countries. While in India women aged sixty plus may not be using cosmetics, in USA even elderly women use lot of cosmetics. Differences also lie in the perception of the same product or product categories. While in India, women tend to believe in keeping more number of sarees or dresses, while the accessories wore with them will be limited, in the west, women tend to keep limited number of dresses but they tend to wear matching accessories. Another very important category where a difference may arise is the decision making process. Generally in India, the elder of the family will decide on the behalf of the rest of the

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Glocalization family. If not the elder, the male earning member will decide. While the families in the West are more nuclear, but within the nuclear family structure the decision tends to be collective.

Keeping these things in mind, global marketers should develop strategies to influence the buying behaviour. Some marketers prefer to use an universal message all over the world while others prefer to develop country specific ads. The former category generally will include products of high tech like computer or if they want the consumers all around the world to develop an universal taste, for example advertisers of Lee Jeans. They purposely use American models exhibiting typical American style. The message is clear, wearing Lee Jeans, one will be transported to the American environment. Generally where the consumer has very rigid habits, the advertisers modify their ads to suit the local taste. For example, McDonalds always develops a local ad. Other examples are, Coke always uses local heartthrobs (Hrithik Roshan and Vivek Oberoi) as their models. Barbie Dolls Company also falls in the same category. Thus, Lee and Coke both are American MNCs but have a very different approach towards their cross-cultural consumers.

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Glocalization PROBLEMS RELATED TO CROSS CULTURAL MARKETING: Global marketers have to device special marketing strategies to cut through the cross-cultural barriers. This will be related to the promotional appeal, distribution channel, pricing strategies. One mix of promotional appeal and pricing strategy may be highly successful in a Latin American country but a failure in an European country.

To launch a product in another country, one will face three types of problems. Let us discuss them one by one. First is how to promote the product. The message passed across should be correctly interpreted and not misunderstood. Certain words may sound perfect in some language while not appropriate in another. For example, the word clock sounds like the word death in Chinese. What might be taken as perfectly decent in one culture is taken vulgar by another culture. Special effort should be undertaken to cater to local taste and preference, although the initial cost may be higher as it involves costly and time-consuming market research but in the long run it pays off. The second problem is how to distribute the product. This is particularly true about developing economies. Many a times these countries suffer from logistics problem, problem of inventory, warehousing and storage. Besides that, economic considerations do not allow the consumer to buy in large quantities, and smaller packages are instant success. A classic example of this is our own country. The concept of sache and pouches for every product from shampoo to tomato puree has been an instant success in India. Many societies prefer intimate personal relation between the producer and the distributor while in other societies the quality of the product matters more to a distributor than any other prior acquaintance with the manufacturer. The third problem id how to price the product, what commission to be given to the intermediaries, what should be the introductory price, how should the price of the matured product be changed by a MNC. People may react differently to an identical price change. In one society an increase in price is attached positively with the quality of the product while in another society people may view with suspicion, thinking an increase in price as exploitation by the multinationals.

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GLOCALITY IN INDIA BY MNCS

INTRODUCTION: Product and promotion transfers are the essence of MNC marketing. Anyone travelling abroad can see the Coca-Cola, Pepsi, McDonalds, Sony and Kentucky fried chicken everywhere. Coca-Cola and Pepsi sold in 150 countries and promote their product in similar fashion in almost all the countries. Given such experience, one can believe that most products and promotions are easily transferable with or without any modification among the subsidiaries of MNCs. The benefit of the transfer is to take the advantage of the multinational marketing synergies as well as the advantage of the customer similarities across countries. This transfer issue is integrally connected with Globalism. As this transfer shows basic similarities among markets. Rarely companies think about developing new products. It is becomes a viable proposition only when MNCs find unique, profitable segment for which they do not have any products. Products transfer also impact promotional strategy, since the intermarket transfer of products opens opportunities to standardize brand images through promotions. CURRENT INDIAN SCENARIO: In the current scenario, national economy and marketplace are undergoing rapid and wrenching transformation. Several reasons could be attributed to these changes. One of the reasons is Globalization, the explosive growth of global trade and international competition. The other reason is technological change, which is an important factor, as technological competitiveness is making the global marketplace cutthroat. Market success goes to those companies best matched to the current environmental imperatives. Those who can deliver what the people want and can delight the customer, are the market leaders. Today companies operate in such a marketplace where survival of the fittest is the law. To win companies are coming out with various new strategies; Indian market is also changing very fast. To capture the Indian market, Indian as well as MNCs are using all of their resources.

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Glocalization Indian market is no longer a sellers market, whoever provides value for money, he is the winner. Companies have huge idle capacities, as they have wrongly calculated the market size and installed huge capacities. This has converted the market in buyers market. Being one of the biggest consumer markets, India has attracted several MNCs. They came here with high enthusiasm, as they thought that the market is huge, if they command even a small share of the pie in the initial years, it would be good. But there entry was a failure, the market size assumed by them turn out to be an over-estimate. By the time, they realized that the Indian marketplace is different ball game they were incurring huge losses, these global monoliths started looking like a yet another company in the market place. Then they changed their outlook. They started searching the market place to understand its dynamics. They have dropped their traditional global assumption about market behavior and adapted there offering (Product) and the company according to the local prerequisites. They have realized that to succeed in the Indian market place they have to hire Indian representative who are much aware of the Indian economic, political, legal and social realities, as well as "made for India marketing strategies. This in-turn resulted in a hypothesis "think globally, but plan and act locally. WHAT DOES GLOCAL MNC MEAN: Glocal MNC means those companies that have global presence but they have their planning decision making and implementing capabilities in India, that is local. These transnational have learned an overwhelming lesson that to succeed in India they have to craft "Made- for India strategies". These companies have global products but their marketing strategy is based upon Indian environment. These companies follow the principal of "Think Global, but plan and act Locally. These companies have realized that survival and success of a MNC depends on localization. If you do not change according to the circumstances, you are bound to fail.

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Glocalization WHAT DOES GLOCAL MNCs MARKETING MEANS: Glocal MNCs marketing is specifically crafted "MADE-FOR INDIA MARKETING STRATEGIES". These marketing measures takes care of MNCs Global value proposition as well as helps them to come out with certain strategies so that they can compete in the market. It helps them to decide their Market segment; Target markets and market Positioning. It also provides them insights about the future market condition. Thus, these marketing strategies are the tools of MNCs. WHY GLOCALITY: It is been found that 70% of US products innovations are transferred abroad and it is six times more expensive for companies to custom-build products then to got transfer them from abroad. It is also easier for companies to transfer products from their parent firms as it reduces the risks of product failure. So it is profitable for an MNC to launch its Globally accepted products wherever they go. However, here comes the differentiating factor. To find out the product acceptability, the market screening and transfer process begins with market need diagnosis. This is done locally and if company has any such product it can be transferred, otherwise it has to be developed locally. As establishing a brand is a costly affair, it is necessary that a proper product be launched in the market. MNC companies want to have a loyal customer as the outlook of these companies, which are coming to India, is long term. MNCs have found that Indian consumer exhibits a peculiar behavior. To satisfy them they have to have a different game plan. This game plan was glocality. Why companies are following "Glocal Marketing" in India is due to several reasons; a few are listed below: 1. MARKETINGS CRITICAL ROLE IN ORGANISATION: Peter Drucker has said, "Marketing is so basic that it can't be considered a separate function. It is the whole business seen from the point of view of its final result, that is, from the customers point of view. Business success is not determined by producer but by the customer." Global markets mean a much larger markets for goods and services. With this, MNCs face greater number of competitors. MNCs source their products from abroad or on Original Equipment

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Glocalization Manufacturer basis or they are manufacturing it at their plants in India. These companies have increasingly realized that what a customer want in India is different. Thus they have to adopt a "Made for India Strategy", as marketing is a very important part of organisation, thus to have a Glocal marketing strategy is very important. 2. TO BUILD CUSTOMER SATISFACTION THROUGH QUALITY, SERVICE AND VALUE: Companies have to be receptive to new ideas. In 1992, IBM suffered huge losses ($4.96 Billion), because they were myopic. To be successful MNCs have to be focussed. They have to provide what customer wants. Being global monoliths it is not new for them, but to realize it took a few years. MNCs have realized that that the perspective an Indian consumer about Quality is poor, as none of the Indian Company wanted to talk about that thus the market is price sensitive. Truly Indian market is not price sensitive but as the customer want value for money. He saw no difference between a Lifebuoy and a Lux soap he has the same value for these products, as he just wants basic functionality from the product. They also realized that Indian customer do not know what the quality is so he/she is satisfied with whatever he/she is getting. To educate Indian customer is a knew task for these MNCs, as it was necessary to communicate it in Indian way i.e. by talking about Quality keeping Indian social environment in to consideration. 3. CULTURAL AND SOCIAL VALUES: They have realized that cultural and social values play a significant role in Indian buying behavior. They have realized that the cultural values of an Indian are different from his US counterpart. An US citizen want achievement, success freedom, material comfort, whereas an Indian is religious, socially compliant, want to have achievement, success but still he/she is family oriented. 4. BELIEFS AND ATTITUDE ABOUT MNCs: After the liberalization there was hue and cry and a large number of organization grew to oppose the opening of the Indian market for MNC's. The logic was that an MNC has ruled India for years and it was perceived as tantamount to repetition of the story. Therefore, it became imperative for MNC's for adopting an Indian mask.

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Glocalization 5. DRIFT FROM SELLING CONCEPT TO SOCIETAL MARKETING CONCEPT: Indian market is changing rapidly. Customer want more benefits, thus the whole exchange process is changing from selling concept to marketing and then to societal marketing concept. As a large number of players are in the market and everyone is coming out with extra benefits, thus it becomes imperative for companies to give needed attention to the customer and this in turn resulted in marketing concept. MNC's have realized that not only marketing concept but societal marketing concept give them clear cutting edge over there competitors, as if they something for the society ultimately it goes to the customer. This will also give them acceptability within Indians. Thus, it became necessary for MNC's to adopt "Globalization". 6. PUZZLING INDIAN MARKET: MNCs have found that Indian market is puzzling. To win here they have to form alliance with local corporate. Solo entries by a few companies have taken so much time that they have lost the first mover advantage. Thus, it becomes very important to turn themselves in to a GLOCAL company as it helps them to understand the Indian marketing Maze. 7. DIFFERENCE IN VALUE PROPOSITION: Value proposition for an Indian and his counterpart in a western country are different. While an Indian want, just the basic benefits from products whereas his western counterpart wants safety as well as other benefits. So the value proposition offered by Ford motors in western countries i.e. automotive safety fall in deaf ears of an Indian as he give last priority to safety. Similarly the TV sets with which Sony entered in India in 1996, featuring their well-known Trinitron picture-tubes, were priced at a premium of Rs 10,000 and above over the average market, since initially these TVs had sold a lot and later on sales declined. Sony realized that the value proposition for an Indian is different. Sony has launched many products keeping in mind the Indian consumer. 8. DIFFERENCE IN HABITS: Habits of an Indian and his counterpart in a western country are different. The food habits and recreational habits are different. Therefore, the requirements of the people are also different. MNCs have found that the globally accepted products are not been able to satisfy the Indian palate. Therefore, they are developing India specific products. Like "Kelloggs" has come out with three globally developed cereals priced high. They were unmindful of the requirements of the 49

Glocalization palate of an Indian. Result: they failed. Then they developed products like Chocos biscuits and cereals like mazza with ethnic flavor of Elaichi, coconut, kesar and rose. 9. INCREASED ROLE OF RURAL MARKETING IN PRODUCT SUCCESS: 70% of Indian customer lives in rural parts of India and this market is untapped. Therefore, rural India is a target market for a large number of companies. But as rural customer want value for money companies have to provide them no-frill product as they do not value any other benefit except the basic benefits. At the same time companies have realized that rural advertising expenditure per customer is significantly lower than the urban Marketing. According to research by Anugrah-Madison, it costs roughly Rs 1 crore to promote a consumer durable inside a state. This includes the expenses of advertising in vernacular newspapers, television spots, in-cinema advertising, radio, van operations, merchandising, and point of purchase promotions. The company found that a campaign like this could reach millions. "According to our estimates, a similar urban campaign may cost twice as much. Moreover, since various products have reached saturation levels in urban India, rural advertising may actually generate more purchases," says MD of the company. The fact that rural marketing is actually cheaper than perceived may well turn out to be the "Aha!" moment for companies waiting to walk down country roads.

HOW GLOCALITY WORKS:

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1. BY HIRING INDIAN PROFESSIONAL AS WELL AS TIE-UP WITH INDIAN CORPORATE: -

Global

markets mean a much larger markets for goods and services. With this MNCs face greater number of competitors. MNC source their products from abroad or on Original Equipment Manufacturer basis or they are manufacturing it at their plants in India. These companies have increasingly realized that they cannot do it alone, to succeed they have to have a strategic alliance with a local partner sometimes even with a competitor. In this context, we can say that these MNCs are Glocalising by hiring Indian professionals or with a JV. The benefits are manifold as their JV partner has Insights about Indian market: they can easily negotiate with the Government; an established distribution network; as well as they subsides a competitor. Giants like IBM, AT&T, Philips, Siemens, have realized that they can't achieve dominant position without forming strategic alliance with local or domestic players. A local partner has acted as a guide to these transnational through the maze that is Indian market is.
2. BY COMMUNICATING AND CHANGING QUALITY PERCEPTION:

- MNC's are coming up with

new technology in India and they are properly communicating it to the customer. Like when Daewoo has launched its car Cielo they have communicated the technology of Multi-point fuel injection system. Customer understood the benefit of such technology and the benefit. However, there is a trade-off between Quality a customer perceive and a company wants to communicate. Thus, this positioning was a failure. Therefore, when they came out with their small car, they positioned it as a Family car. Thus, the perception of the Indian about the desired product is changing. Now they know the difference between the products and the utilities derived out of it. As Indian customer always wanted value for money with the changed perception now if one see that the current market scenario the difference is there. Maruti 800 segment is no longer the highest selling car segment in India, now the so called Zen segment is coming up; Lifebuoy now enjoys 2% growth as compared to popular (priced between 8 to 12 Rupees) 25% and premium 15%; TVs like LG, Samsung, Thompson are not selling their products at lower prices still they are gaining market share at the expense of Indian companies like BPL, Videocon; Low priced TV king Akai (CEO of Akai says the way they entered Indian market was not appropriate) is coming up with TVs in premium segment including Plasma TV.
3. BY PROPER COMMUNICATION IN INDIAN LANGUAGE: -

With the products prices MNCs has

they realized that it is difficult to sell them in Indian market. They started selling the concept of

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Glocalization truly quality by proper communication. The focus of MNCs was to change the Indian customer outlook about quality. With there promotion, Indian customer started asking for value for money.
4. BY RURAL MARKETING: - If

one go to villages they will see that villagers are using Toothpaste,

even when they can use Neem or Babool sticks or Gudakhu; villagers are using soaps like Nima rose, Breeze, Cinthol etc. even when they can use locally manufactured very low priced soaps. Villagers are constantly looking forward for new branded products. What can one infer from these incidents, is the paradigm is changing and customer is no longer price sensitive? Indian customer was never price sensitive, but they want value for money. They are ready to pay premium for the product if the product is offering some extra utility for the premium. This whole perception has changed because MNC's as well as Indian companies have realized the value of rural marketing. The TV set Sampoorna was just one part of LG's strategy. Perhaps a more important aspect of hooking rural customers was rejoicing the TV set to appeal to local needs. So last year, LG spent $50,000 (Rs 21 lakh) developing a unit that would have on-screen displays in the vernacular languages of Hindi, Tamil and Bengali. The logic: rural users unfamiliar with English would still be able to use the TV without feeling intimidated. As the rural customer wants value for money, he is willing to pay more if he sees value. This is a major departure from the past. Historically, most companies, especially those that hawk consumer durable, have always believed that cheap products do well in the villages. That is not necessarily true. Priced at Rs 14,400, LG's Sampoorna, for example, costs Rs 2,000 more than equivalent products from firms like BPL or Philips.
5. BY UNDERSTANDING CULTURAL AND SOCIAL VALUES: - MNCs

have recognized that in India

Social and cultural values have a very strong hold on the people. Indians are socially compliant. Cultural values play major role in deciding what to buy. As well as Indian are emotional and sensitive. Thus to promote there brand they are exploiting Indian social and cultural values. As MNC car manufacturers are positioning themselves on family car basis as in India family concept is very strong. McDonalds has recognized the preference for vegetarian foods among Indians thus they have included vegetarian foods in there menu. These products are given names having a tinge of Indian-ness like McAloo.
6. BY PROVIDING WHAT CUSTOMER WANT: - An

Indian customer wants value for money. He does

not see any value in frills associated with the products. He wants to for the basic functionality. However, if the seller provides frills free of cost he is happy with that. They are happy with such a

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Glocalization high technology that can fulfill their need. As "Motorola" has launched, seven models of Cellular Phones of high technology but none took off. On the other hand, "Nokia" has launched a simple product, which has captured the market.
7. BY PROMOTING PRODUCTS WITH INDIAN MODELS AND ACTORS:

- MNCs are picking up

Indian models, actors for advertisements as this helps them to show themselves as an Indian company. Diana Hyden and Shahrukh Khan are chosen as a brand ambassador for MNC quartz clock maker "OMEGA" even though when they have models like Cindy Crawford.
8. BY ASSOCIATING THEMSELVES WITH INDIA: - MNCs

are associating themselves with India by

talking about India, by explicitly saying that they are Indian. M-TV during Independence Day and Republic daytime make their logo with Indian tri-color. Nokia has designed a new cellular phone 5110, with the India tri-colour and a ringing tone of "Sare Jahan se achcha".
9. BY PROMOTING INDIAN SPORTS TEAM: - Companies

are promoting Indian sports teams so that

they can associate themselves with India. With this, they influence Indian mindset. LG has launched a campaign "LG ki Dua, all the best". ITC is promoting Indian cricket team for years, during world cup they have launched a campaign "Jeeta hai jitaga apna HindustanIndia India India". Similarly, Whirlpool has also launched a campaign during world cup.
10. BY TALKING ABOUT A NORMAL INDIAN: - Companies

are now talking about a normal India as

it is a normal tendency of an Indian that he always try to associate himself with the product, if he/she can visualize himself with the product, he /she becomes loyal to it. That is why companies like Daewoo based their advertisements on a normal Indian family.
11. BY DEVELOPING INDIA SPECIFIC PRODUCTS: -

Many MNCs are developing India specific

products. Keeping into consideration Indians requirement develops these products. As Ford Motor Company has announced that Ikon its new car is designed exclusively for India. Electrolux is working on a made-for India fridge designed to serve basic purposes: chill drinking water, keep cooked food fresh, and to withstand long power cuts.
12. BY GIVING INDIAN WORDS FOR BRANDS: -

These MNCs are giving India words for brands.

Like LG has used India brand name "Sampoorna" for its newly launched TV. . The word is a part of the Bengali, Hindi, Marathi and Tamil tongue. In the past one year, LG has sold one lakh 20inch Sampoorna TVs, all in towns with a population of around 10,000. By the end of 1999, roughly

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Glocalization 12% of LG's Rs 950 crore turnover is expected to come from Sampoorna sales. That's Rs 114 crore worth of TV sets sold in the villages in a year.
13. BY ACQUIRING INDIAN BRANDS: - As

Indian brands are operating in India for a long time and

they enjoy a good reputation in India. MNCs have found that it is much easier for them to operate in India if they acquire an Established Indian Brand. Electrolux has acquired two Indian brands Kelvinator and Allwyn this has gave them the wellestablished distribution channel. As well as trust of people, as people believe these brands. Similarly Coke has acquired Thums up; Gold Spot; Citra and Limca so that they can kill these brands, but later on they realized that to survive in the market and to compete with their competitor they have to rejuvenate these brands.
14. BY INDIA SPECIFIC POSITIONING: - Global

positioning of the MNCs. Global positioning of the

MNCs is of a high quality, luxurious product. Companies target segment is high-end customer. But the positioning of the MNCs product in India is Glocal. Sonys price positioning in India is close to Indian companies. The myth of enormous size of Indian middle class is subsided. The positioning as for as segment is concerned is such that a large section of Indian population can buy it. That is what Revlon has done, they priced Lipstick at Rs. 99. Daewoo Motors has re-segmented themselves on the basis of total value with price being one of the variables. Companys products are designed in keeping the customers value based choice in consideration.

Positioning of the MNCs product in Western markets: 1. Quality Low

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Glocalization 2. Luxurious Price 3. Economy Positioning of MNCs product in Indian market: 1. Quality Low 2. Price Luxurious 3. Economy

15. BY ADOPTING LOCALISED WAY OF DISTRIBUTING -

MNCs are preoccupied with the

distribution channel they have in Western countries. The distribution channels in these countries are Big scale Super markets, they thought that a similar system can be grown in India. However, they were wrong; soon they realized that to succeed in India they have to reach the nook and the corner of the country. They have to reach the "local Paan wala, Local Baniya" only they can succeed. MNC shoe giants, Adidas, Reebok, Nike started with exclusive stores but soon they realized that they do not enjoy much Brand Equity in India, and to capture the market share in India they have to go the local markets shoe seller they have to reach to local cities with low priced products. Similarly, Volvo realized that to sell there 35 ton trailer trucks they have an uphill task of selling concept. Therefore, they relied on well co-ordinated distribution channel.
16. BY ASSOCIATING THEMSELVES WITH INDIAN CELEBRITIES: -

MNCs have realized that in

India celebrities enjoyed a great popularity so they now associate themselves with Indian celebrities. Recently Luxor Writing Instruments Ltd. a JV of Gillette and Luxor has launched 500 "Gajgamini" range of Parker Sonnet Hussain special edition fountain pens, priced at Rs. 5000. This pen is signed by Mr. Makbul Fida Hussain a renowned painter who has created "Gajgamini" range of paintings. Companies are promoting players like Bhaichung Bhutia, who is promoted by Reebok, so that they can associate their name with players like him and get popularity.

GLOCAL MARKETING STRATEGIES FOR A FEW MNCs IN INDIA:

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Glocalization MNCs are designing India specific Marketing Strategies. Recently Compaq and Sony has launched there Marketing Strategies they reflect that the companies are trying hard to turn themselves in to Glocal company. Compaqs redesigned marketing strategy: For high value Business:1. Call centers in major markets: - Company will install call centers within the country to reduce the time to market the products launched in Singapore. 2. Forging alliance with the Indian software developers: - Company is planning to forge alliance with the Independent Indian software developers as part of its strategy to provide focus on the enterprise solution Business in the country.

For the high-volume segment: -

1. Manufacture commercial PCs in the Indian market. 2. Compaq will manufacture commercial PCs in the Indian market to get aggressive on the pricing strategy giving customer more choice on product, technology and pricing. This segment includes PCs, Notebooks and low-end servers. Sonys reoriented marketing Strategy:

New models to be launched at the same time as Globally i.e. June- July. India-specific designs for end products and components. Introduction of lower end models like Walkman at Rs. 900 currently company has a Walkman priced at Rs. 1300. DVD to be launched during September- December. Audio segment is 30% of Sony Indias total business of Rs. 634 Crore.

CONCLUSION: Large emerging markets have their own dynamics. These markets have a very different a very different need set. A uniform global approach may be inappropriate for succeeding in these 56

Glocalization markets. Large markets merit local responsiveness. Thus Glocalisation becomes very important. These Glocalisation should take in to consideration all constraints as if to safeguard transnational worldwide positioning, as well as to provide the proper marketing strategy to compete in the local market.

Welcome to the world of McDonalds

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McDonalds Main Hain Kuch khaas... Jo Jeeta Sabka Vishwas, Ek He Hai Bachcho Ki Aas, McDonalds Rahe Hamesha Unke Paas Ray Kroc Ne Kiya Unka Sapna Sakar India Ne Jise Kiya Swikar, Burger Hai Iski Shaan, Esliye Duniya Hai Inke Mejwan Khane Ko Mile Yahan Sacha Ahesas Koi Na Bhool Paye Jiska Swad, McDonalds Hai Ekdam Cool Cool, Kabhi Na Jaana Ise Bhool Bhool..

McDonalds a good Thought..

A warm and friendly family restaurant where everybody has a great time-especially children.McDonalds family customer. Where we can go and enjoy a wide range of products.vegetarian, fish and chicken, however no beef or pork is being served. Where one can rest assured that all products are cooked in 100% pure vegetable oil. Wherever vegetarian products are cooked by separate staff using separate equipments, away from a nonvegetarian product where QSC&V i.e. Quality, Service, Cleanliness and Value to their customer are there valued assets.

Entry Strategy of McDonalds

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McDonald's India opened its doors to India in October 1996. Thanks to Mr. Amit Jatia and Mr. Vikram Bakshi, who took the initiative of starting an outlook like McDonalds in India, which has brought new taste to our tongue which is rich and varied. McDonalds started in the year 1995 in Bandra in October. Obviously before starting McDonalds, a complete and detailed market report was conducted in order to identify whether this foreign concept was accepted by Indians. The concept worked out and McDonalds started his job. McDonalds entrance to India through sound research: Basically, before entering the India McDonalds had to ensure that the market research was organized in a systematic and complete manner. But, here the McDonalds have to first find themselves the strength and the limitations. While applying practically McDonalds being foreign outlet has to establish it self in India i.e. they have to conduct a thorough research it could be by adopting or hiring research agency, import agents, etc. When McDonalds entered India it had to undertake the studies in different spheres such as market information, product information, promotion information, and so on. Market information of McDonalds being the foreign outlet felt the need of testing Indian market, before establishing itself in the cultured and traditional bounded country like India. For this the McDonalds started analyzing various factors such as market performance, market shares. These details were only possible with the proper market research. Research through observation by McDonalds: They very first thing that clicked in the minds of the McDonalds researcher was the survey of the consumer near the colleges, hospitals, theatres, airports. The immediate thing done by them was the Counting the number of people wearing shoes. Their research was based on this very aspect. This was important because according to the McDonalds people this very factor helped in identifies the status, standard of living and how sophisticated the people of India are?, their outlook towards the western culture and its acceptability. McDonalds was helped by the advertising agency i.e. by MUDRA AD AGENCY. The market information gathered was fully customer oriented. McDonalds needed various information for conducting the sound research. The factors that McDonalds had to cover were as follows:

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Glocalization 1. MARKET INFORMATION: McDonald's is a synergy of globally-acclaimed skills with Indian expertise. McDonalds's Indian ventures are owned and managed by Indians. Amit Jatia with Hardcastle Restaurants Pvt. Ltd. owns and manages McDonald's restaurants in Mumbai and Pune. In Delhi, Jaipur and Mathura, McDonlad's restaurants are owned and managed by Vikram Bakshi's Connaught Plaza Restaurants Pvt. Ltd. Amit Jatia and Vikram Bakshi are like-minded visionaries who share McDonald's complete commitment to Quality, Service, Cleanliness and Value (QSC&V). Having signed their joint-venture agreements with McDonald's in April 1955, they trained extensively, along with their Indian management team, in McDonald's restaurants in Indonesia and the U.S.A. Just a small step to ensure that all their Indian customers experience the delight that McDonald's is internationally famous for! 2. PRODUCT INFORMATION: When any company enters the foreign market it has to decide which particular product or the service line has to be added so that it could strengthen its position in the particular country. McDonald's is being specialized in their dish called 'BURGERS' has to conduct the research so that they may know the real taste of tongue that the Indians inherit. Burger is a junk food therefore the researcher has to emphasis to the taste that is more preferred by the Indian people. The finding suggested that the Indians are more fond of the dishes made out of potatoes. For instance in Maharashtra the people are more fond of the stuff like - Wada pav, Samosa, Pav Bhaji and these are all made of potato. Ultimately the McDonalds came up with the potato Veg patties and really the concept worked out.

3. PROMOTIONAL INFORMATION: Appropriate market research can provide the company the knowledge of how to promote the product or service and how to bring it to the notice of the customer. It is very difficult to capture the foreign market and establish itself in the country which inherits different culture. McDonalds first target were the children, when one goes to the McDonalds the climate there created is such that the children do attract towards it. From time to time the McDonalds have taken up various promotional strategy were the kids are attracted. Not only the kids are the target but McDonalds has always been in the effort to cover the most of the Indian segment. McDonalds arrange various parties for the kids and various function or the games even for the women like it had conducted the housie game for the women where the one who wins will get the meal of McDonalds free. The other promotional strategy were arranging of the Veg surprises and the happy meals for the kids. McDonalds India has developed a special menu with vegetarian selections to suit Indian tastes and preferences. Look out for the Veg symbol

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Glocalization in their communication and their product wraps. It denotes that the item is 100% veg does not even contain egg! 4. DISTRIBUTION INFORMATION: Distribution or the place information also plays a vital role for any company for its proper establishment in the foreign country. Sound working of the distribution channel for the proper provision of the service to the customer is very essential and it is a key element for the success of the service. When McDonalds entered into India it has to find out the suitable distribution channel that could be the leading factor for its development in India. Along with it the proper warehousing, inventory, transportation could be done. This in brief it means a careful logistic approach. In case of the burgers the patties inside it has to kept in the frozen state of 80 degree Celsius. These patties are prepared in Bhiwandi which is the distribution centre of the McDonalds in Mumbai. They maintain the high quality of food which has helped them to gain immense popularity. McDonalds is known for its exemplary contribution to the local economy and environment. Ever since its first restaurant opened in India, McDonalds has fulfilled its social obligations in every possible manner and bringing smiles to many faces.

5. PRICE INFORMATION: Pricing any product is surely a crucial problem before a company. The company has to adopt a sound pricing strategy so that it could survive in the market for a longer period and play its ongoing has been globalizes so that it could maximize its profit. Role in the cut throat competition in the harsh economic climate the world. McDonalds is called the turnover restaurant, it has to frame its pricing policy with due care so that it is easily accepted by the Indian. McDonalds have entered the Indian Market through penetration strategy. The McDonalds prices are quite reasonable. Thus McDonalds pricing strategy is such that it provides the value of money concept to its customer. McDonalds can provide a full healthy meal and nourish the one who go to McDonalds. 6. ENVIRONMENT INFORMATION: Of interest this means that they earn the economic, political, social, cultural and legal environmental so marketing strategies can be decided in the light of the special features. When McDonalds stepped in India the possible threats posed by them were the various political parties such as Shiv Sena, VHP, and so on. Thus for establishing oneself in the foreign market the environment should be very protective and healthy so that it working is not affected.

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MCDONALDS IN INDIA
Consistency and uniformity the trademark of McDonalds anywhere in the world beit in areas like the quality of the food or the attention to service. Yet, a McDonalds in China would be distinct from its counterpart in Germany or Canada or India. In India, McDonalds opened with a beef-less and pork-less menu and special product formulations to accommodate Indian culture and palate. Amit Jatia, the joint venture partner for McDonald's India (western region), says, McDonald's has spent considerable amount of time to understand Indian culture. Out of respect for many of our customers' beliefs, we are not serving any beef and pork items. The menu consists of chicken, fish and vegetarian products that include milkshakes, soft serves and the world-famous French fries. McDonald's has also added Chatpatey (spicy) Potato Wedge and the Wrap to their menu in 2002. McDonald's commitment to its Indian customers is also shown in its development of special sauces that use local spices. McDonald's has also changed its operations to address the special requirements of a vegetarian menu. Vegetable products are prepared separately, using dedicated equipment and utensils. Also In India McDonald's uses only vegetable oil as a medium for cooking. The French fries are prepared using spices and fried in 100% vegetable oil (Palmolein oil). Not only that, but the mayonnaise used in its vegetarian burgers is also egg-less. This dedication to local cultures is not new for McDonald's. For the past 49 years, McDonald's has opened restaurants in about 120 distinctly different countries and cultures. With guidance from its local partners, McDonald's is able to adapt where necessary - its menu and restaurant operations to complement existing eating-out options. McDonald's local owners understand what their customers want and perhaps more importantly, what is acceptable within local customs and values. McDonald's was committed to sourcing its needs from local suppliers and farmers. This assurance is rooted in the philosophy of our company's founder, Ray Kroc. He firmly believed in mutual benefits arising from a partnership between McDonald's and the local businesses, thus ensuring that McDonald's commitment to growth was mirrored by that of their partners. In keeping with this belief, McDonalds have carefully identified local Indian businesses that take pride in satisfying customers by presenting them with the highest quality product. McDonald's India today purchases more than 96% majority of its products and supplies from Indian suppliers. McDonald's India has developed a special menu with vegetarian selections to suit

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Glocalization Indian tastes and preferences. McDonalds does not offer any beef or pork items in India. Only the freshest chicken, fish and vegetable products find their way into our Indian restaurants. In addition, they re-formulated some of their products using spices favored by Indians. Among these are McVeggie burger, McAloo Tikki burger, Veg. Pizza McPuff and Chicken McGrill. They have also created egg-less sandwich sauces for their vegetarian customers. Even their soft serves and McShakes are egg-less, offering a larger variety to their vegetarian consumers. Vegetarian products are prepared separately, using dedicated equipment and utensils. Employees in the vegetarian and non-vegetarian sections of the restaurants can be identified by the different colored aprons that they wear. This separation of vegetarian and non-vegetarian food products is maintained throughout the various stages of procurement from the suppliers, cooking and serving. McDonalds have specially developed a range of 100% pure vegetarian food to offer. In fact, even the mayonnaise used in the items is egg less. Taking in to account the Indian palate, they have prepared the choicest of products using spices favoured by us.

So the next time when we think of delicious vegetarian food, rush straight, to our nearest McDonalds Family Restaurant.

PRODUCTS OFFERED BY MCDONALDS

Veg: 1. McVeggie 2. McAloo Tikki 3. Pizza McPuff Non-Veg: 1. Chicken Maharaja Mac 2. McChicken 3. Filet-O-Fish 4. Chicken Mexican Wrap 5. Chicken McGrill Add-Ons: 1. Fries 2. Potato Wedges Beverages: 1. Cold Coffee 2. Ice Tea 3. Soft Drinks (Coca-Cola, Fanta and Sprite) 4. McShakes

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Glocalization 5. Hot Serves (Cappucino, Caf Mocha, Plain Tea, Cardamom Tea, Hot Choclate) Frozen Desserts: 1. McSwirl 2. Soft Serves 3. Floats

Mumbai Operations Chief, Amit Jatia says "We have to keep our ears to the ground to know what the customer desires. If there is this indication, we put on our thinking caps and brief the product development team. They in turn develop the product and give it to us for trial. It goes through various trials -- at the head office, the crew, other staff. Depending on the feedback, we introduce the item in one outlet, and after gauging customer response, launch it in other outlets as well."

MCDONALDS AS A BRAND
The company is keen on Indianising. So Maharajah Mac (non-vegetarian mutton burger), Manpasand meal (McAloo tikki burger / salad sandwich for veggies and McChicken kabab with small fries for non-veggies). Amit Jatia says such a strategy marks McDonald's operations everywhere. "The key to our worldwide functioning is to McDonalise the local people," he says. As a brand, the company has succeeded as a provider of fast food retail outlet. Its operations are gaining growth and newer and newer outlets have been proposed to be set up. McDonalds have been able to tap its target market and make people aware of its brand by advertising, providing faster food service and entertainment to children. It has really worked out in metropolitan cities, especially in Mumbai and Delhi. You talk about burgers in India, people think about McDonalds. This is the brand recognition McDonalds have achieved while operating in India. The brand also signifies happiness and smiles all round.

PACKAGING IN MCDONALDS
McDonalds use a minimum of 50% recycled content in corrugated cardboard boxes and ask that our suppliers do the same. All McDonalds food boxes and cartons are made from 72% recycled material, carry out bags are unbleached and made from 60-80% recycled material, while napkins are 10% recycled paper. Delivery vehicles which can carry fresh, frozen and chilled food have resulted in fewer delivers, enabling them to reduce diesel costs and fuel emissions. Since 1988,

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Glocalization they have only used CFC-free materials in their packaging. You will see the CFC-free stamp on all their foam packaging. All refrigeration and air conditioning systems are carefully maintained by approved contractors following industry guidelines for the use and disposal of CFCs.

ADVERTISING OF MCDONALDS
McDonalds promotes Ronald McDonald in their advertisements in India because the target market for McDonalds is primarily kids and children. Ronald McDonald stands for a person who is a magician that spreads smiles all round and acts a symbol for fun and entertainment. McDonalds for the kid is a place to enjoy and rejoice and get gifts. The McDonalds advertisement also emphasis on the great experience to have fast-food with a family. The concept of family is very much prevalent in India and hence McDonalds is emphasizing on this concept. Therefore, the McDonalds is also called a Family Restaurant. In their menu of Happy Meal, toys are also given free along with the meal (Pokemon toys were given earlier,however now the toy collection changes depending upon new animation movie releases). The Pokemon cartoon serial is very much popular among the children in India and with the increasing superhero movie trend (eg.Spiderman,Batman,Bayblade etc) toys of the main movie characters is let out. These toys also act as an agent to promote McDonalds. Recently, they have their advertisements coming up in the televisions (Im Lovin It). This ad also focuses on the pleasure of eating food at McDonalds and you dont need a reason to come to McDonalds. They dont use any kind of celebrities in their advertisements (only duplicates highlighting theyre prices).

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McDonalds
(RECOMMENDATION FOR MCDONALDS) (THE FUTURE MARKETING STRATEGY)

McDonald's is the world's leading food service retailer.It franchises and operates more than 32,000 restaurants in over 119 countries serving more than 47 million customers each day. It is one of the world's most well-known and valuable brands and holds a leading share in the globally branded quick service restaurant segment of the informal eating-out market in virtually every country in which we do business. It serves the world some of its favorite foods - World Famous French Fries, Big Mac, Quarter Pounder, Chicken McNuggets and Egg McMuffin.

McDonalds rich history began with their founder, Ray Kroc. The strong foundation that he built continues today with McDonald's vision and the commitment of their talented executives to keep the shine on McDonald's arches for years to come.

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MCDONALDS Adaptive Marketing Strategy in India

McDonalds launched the same products in India, which they were selling in the other markets. Some of these were the Burger and the French fries. To suit the Indian tastes, McDonalds came up with the following: Mc Puff Aloo Tikki, Mc Salad sandwich

A New Innovation

McDonalds can come up with a unique concept of serving Udipi foods in their outlets.

Mc DOSA

Mc PLAIN DOSA

Mc IDLI

Mc VADA

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MARKET RESEARCH
To ensure ease, the Mumbai customer profile is taken into consideration. This is because McDonalds is present mostly in the cities and Mumbai resembles all type of customer base forming part of the cities in India.

Here two aspects need to be considered: The cost factor if McDonalds goes for mass reach. And whether it succeeds or fails. Also the cities in South India need to be considered because they are masters in preparing

these items and McDonalds is totally new to the race. First of all this is a totally new concept for the McDonalds. An extensive research needs to be carried out in terms of the products: The know-how of the preparation of the dishes. The best possible ingredients that should be used and their perishability. The know-how for dishes such as chutney, sambar, mudga-pudi etc.

At the initial stage, identification of the target market would be the primary issue. Here McDonalds already has a set of customers that are coming to their outlets. At this point competition also needs to be taken into consideration in terms of the following:

What type of dishes the competitors are providing? How are they providing (Innovation in terms of the serving methodology)? For eg; in the

banana leaflets or plates and the reasons for the same. What are the prices they are charging for various dishes? Here different restaurant owners

would be charging different prices. The reason for the same also needs to be identified.

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THE TARGET MARKET

For the city of Mumbai with a population of 1crore, McDonalds can have two distinct target customers.

MIDDLE-CLASS : This group of people does not have huge amounts of disposable income, recognizes that it is costly to have food at McDonalds, and is willing to incur the expenses, but will try to minimize them.

UPPER-CLASS: This group has intertwined McDonalds values throughout their lives and is willing to spend whatever it takes to throw a high-end delight and fill. Typically, this group is characterized by a wealthy one income family where the male works and the female does not. The female of the household typically enjoys the planning.

In general, the target group would comprise of people who eat alone, families or group of people or takeaways, those who prefer to eat at home or at other location.

POSITIONING STRATEGY
The positioning would be dependent on those of competitors and the uniqueness in the service that McDonalds would provide. These innovative initiatives will include launching these restaurants under new brands that wouldnt be saddled with McDonalds fast-food image.

McDonalds can position itself as an innovative, high-quality food and service offerings.

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Glocalization LEVERAGING THE COMPETITIVE EDGE: Here McDonalds can stress on the fact that the outlet for a Mumbaikar would be 15-20 minute travel distance from the house or office. McDonalds is approaching the market as if there was significant competition between the different service providers. By making customer satisfaction a priority over time, local customers will come to appreciate that their needs are given primary importance and form a long-lasting relationship with them. One thing that needs to be considered is whether to provide these food items in separate outlets or whether these would be served in the same outlets. Since McDonalds has now been for a considerable time in the country they might be aware of the market. Here the identification of the target market would play an important role. Hence separate outlets would be opened.

PRICING STRATEGY
Pricing is one of the crucial aspects in any business activity. The price should be fixed or should be arrived in such a manner that it is acceptable to the buyers pocket. Competitors prices should also be considered. Here prices that are not too high can be charged because of the mindset of the customer regarding these food items. But a differentiation would be created for slightly higher prices, than the normal, for the service and the ambience provided.

ADVERTISING AND PROMOTION

McDonalds advertising departments job would be to propose a budget; develop an advertising strategy; approve ads and campaigns; and other forms of advertising. In developing the program, the Marketing Managers of McDonalds need to start by identifying the target market and buyer motives. The advertising should be in the form of hoardings, television commercials, and radio. Stalls at various locations like places of public interests, exhibitions, etc. can be put up at the initial

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Glocalization phase with introductory prices (lesser than the actual). This would also help in determining the preferences of the customer in regards of taste and prices. The Marketing Managers can make five major decisions in developing an advertising program known as the 5 Ms: a) Mission : What are the advertising objectives ? b) Money : How much can be spent ? c) Message : What message should be sent ? d) Media : What media should be used ? e) Measurement : How should the result be evaluated ?

CHOOSING THE ADVERTISING MESSAGE

Advertising messages need to be really effective to create a deep impact in the minds of the consumers. McDonalds can push out more classic hoardings utilizing such lines as:

Tute na McDonalds se Bharosa Try the naya McDosa Next time your hungry, eat something yummy. McIdli se fill your tummy. Ab Idli Dosa ke Saath Ban Jaye Baat McDonalds mein really hain kuch baat

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A DIFFERENTIATION
Everyone in this world was to create his own identity. And why not; because that would be the unique way you would be recognized by the people. CUSTOMER SERVICE The customers should be impressed with the level of attention that they receive COMPETITIVE PRICING The prices should be to the same level as the restaurant would provide in case the same ambience and service is provided. Here differentiation can be created by starting free home delivery with a condition of a certain bill amount.

CONCLUSION
The secret of McDonalds success is its willingness to innovate, even while striving to achieve consistency in the operation of its many outlets. For example, its breakfast menu, salads, Chicken McNuggets, and the McLean Deluxe sandwich were all examples of how the company tried to appeal to a wider range of consumers. McDonalds would face some difficult challenges. The company could also look into expanding more aggressively abroad where the prospects for significant growth are greater.

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CONCLUSION
The customer really has become King. We have heard this mantra for some time, but we seem to have now reached a point where it is no longer merely a means to obtain competitive advantage, but an essential strategy for survival. It leads manufacturing companies to move into service-based offerings, and service-based companies to redouble their attempts to understand and deliver personalized value to customers - and when the customer demands it, rather than when they are ready to deliver. The customer has not been slow to warm to the changing realities of the marketplace. Sir Nick Scheele, President and COO of Ford Worldwide, explains how people no longer want to have what their neighbor has; they want to have what "they" want, and they have the expectation that the dealer or company will provide that. Fundamentally, it's all about customer focus. The issue of whether to adapt (glocalize) or to standardize a companys operations is one of the most important issues in international marketing. Standardization is a philosophy that views the world as one market. This philosophy provides serious advantages that can improve a companys competitive edge. Although standardization can substantially increase a companys productivity and profits, the risks incurred if the standardization process in not done correctly can outweigh the benefits. Marketing a single product one way everywhere can scare off customers, alienate employees, and blind a company to its customers needs. Successful companies state that international marketing works only with some brands, some places, sometimes. Glocalization is the working arm of standardization. It realizes that some degree of adaptation is necessary in the real world. Hence, the concept of Glocalization should be well studied by the multi national companies if they decide to enter a particular country because its use can deliver a lot of benefits to consumers and result in to a mutual benefit for both the company as well as the local countrys customers.

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ANNEXURE
QUESTIONNAIRE FOR MCDONALDS
Q.1. History of McDonalds in India. Why did they entered India and what was the entry strategy? Q.2. What are the current operations in India in terms of branches, marketing strategies, etc.? Q.3. What is that unique thing that McDonalds do in India which is not practiced at any other abroad branches keeping the Indian culture in mind? Q.4. What are the products of McDonalds and while they are launched, which factors are kept in mind? How do you go about your market research for the new product development? Q.5. How has McDonalds as a brand succeeded in Indian market? And what does your brand signify? Q.6. How does McDonalds package its products? And what all things do you consider while packaging your product? What does your Mascot signify? Do you have any kind of Government regulations while packaging your product? Q.7. How do McDonalds advertise its products? What are the promotional strategies used? Do you have any idea how McDonalds advertises abroad? How has the messages being adapted to local culture? In your product McAloo Tikki Burger, why the word Aloo Tikki is used? What are the other forms of media used? Q.8. What is the pricing strategy of McDonalds in India? And what factors are kept in mind while deciding the price? Q.9. The concept of eating burgers and French fries was unknown in Indian market. What promoted or influenced McDonalds to introduce this concept? Q.10. Does McDonalds do any kind of rural marketing? Q.11. How have you adapted yourself to the Indian market in terms of: 1. Hiring Indian professionals

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Glocalization 2. 3. 4. 5. 6. Communicating your brand in Indian language Cultural and social values of India Customer wants and needs Endorsement of any personality Associating yourself with India

Q.12. How have McDonalds positioned itself in Indian market? Q.13. What is the target market for McDonalds in India? Q.14. What is the future marketing strategy of McDonalds?

REFERENCES
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BIBLIOGRAPHY BOOKS:
1. 2. 3. 4. Handbook of cross-cultural marketing (Chapter 2,5,6-Part-I) Herbig. Paul. A Marketing Management (11th Edition)- Kotler. Philip Global Marketing Strategy- Douglas. Susan. P, Craig. Samuel. C International Marketing Strategy (2nd Edition)- Doole Isobel and Lowe Robin (Analysis, development and implementation) 5. Global Marketing Management (6th Edition)- Keegan. Warren. J 6. Consumer Behaviour (Chapter 14)- Dr. Gupta. S.L and Pal Sumitra (An Indian perspective-Texts and Cases)

WEBSITES:
1. www.en.wikipedia.org 2. www.books.google.co.in 3. www.suite101.com 4. www.investopedia.com 5. www.indiainfoline.com 6. www.brandchannel.com 7. www.mcdonalds.com 8. www.mcdonaldsindia.com 9. www.translationdirectory.com 10. www.commondreams.org

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