EPRG FRAMEWORK

EPRG FRAMEWORK

► developed and introduced by Wind, Douglas, and Perlmutter

► focuses on the international marketing operations
► addresses the way the strategic decisions are made within the company
and how the relationships are shaped and maintained between the
headquarters of the company and its subsidiaries
 ETHNOCENTRISM

► companies believe that home country is superior in nature

► they tend to seek similarities with that of the home country
► hardly any adaptations to their products to suit the taste and requirements
of the new market
► conduct little research and study on the international markets
► head office is given more importance as compared to the overseas
subsidiaries or offices situated in the international markets
► no change in terms of product specifications, price, promotion, and other
aspects and is same as compared to the native market
 ETHNOCENTRISM

► advantage of this attitude and mindset is that the company saves the
costs of hiring the qualified staff in the international markets by migrating
the staff from the home country
► disadvantage of this mindset is that showcases the cultural
short-sightedness of the company
Examples:
► Nissan, in its initial years, exported cars and trucks to the USA that were
difficult to start during the cold winter months. In Japan, the car owners
would cover their cars with hoods or blankets during winters and
expected Americans to do the same.
► Gillette razors in India
 POLYCENTRISM

► each country unique and exclusive and consider that the businesses are
best run locally in the international markets
► headquarters has a little control over the activities of each of its subsidiary
markets
► every subsidiary develops its unique marketing and business strategies for
success and the country’s domestic market is given equal importance
► best suited for the countries with certain constraints on the front of
finance, political, and culture
 POLYCENTRISM

► no need to send the skilled workforce to the other countries to maintain

the factor of centralization
► less expensive as compared to the ethnocentric one
► disadvantage -- restricts the career mobility of both local and foreign
nationals working in the company plus reduces the chances of synergy
within the firm as a whole
Examples:
McDonalds – veg burgers in India
No multiple 4’s in prices in China – four sounds like death
 REGIOCENTRISM

► studies the similarities and differences in the world and its various operating regions and
designs the strategies accordingly
► Regions in the world may have similar culture, climate, and transport amongst other
aspects
► Example: India, Pakistan, and Bangladesh or Norway and Sweden
► Example: In India, McDonalds serves burgers without pork and beef keeping in mind
the religious sentiments of the local citizens
 GEOCENTRISM

► ‘think global, act local’

► entire world is potential market
► blend their ethnocentric and polycentric views
► global strategy is aptly and fully responsive to the needs and wants of the
local customers – balance between global integration and local
responsiveness
► effective and efficient use of human resources
 GEOCENTRISM

► immigration laws and policies may put certain limits to its implementation
► approach is expensive as compared to the polycentrism
Examples:
► MTV caters to the local taste of India, China, and South Korea with the
company broadcasting channels with Hindi Pop in India and K-Pop in the
Far East.
► McDonalds offers beer in Germany and wine in France
► Whirlpool washer for sarees. Basic model for India, Mexico, Brazil
► Google/Microsoft