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