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

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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

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Firstly. 4 .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. 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 This is to certify that Ms.

They found out that 5 . MNC’s want to have a loyal customer as the outlook for these companies is long-term. I would also like to thank all those people who have directly or indirectly helped me out in successfully completing this project. In the end. time and devotion. ACT LOCAL’ The phrase ‘think globally act locally’ applies to international product introductions at every level. Glocalization means basically the creation of products or services intended for the global market. knowledge. I would also like to extend my sincere gratitude to Mr. Exexutive Summary ‘THINK GLOBAL. The project reveals the importance of glocalizing products and services in today’s world. The understanding of cultural nuances may mean the difference between success and failure. His ideas and suggestions were indeed creative which in turn helped me to get greater insight about my project. I am also thankful to my parents. 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. Giri Prasad (first -hand manager Vile Parle McDonalds) for sharing their invaluable information for my project. from supply chain channels to product packaging. my colleagues and subordinates for encouraging me and guiding me.Glocalization I am particularly thankful to Mr. but customized to suit the local culture. time and guidance towards the completion of the project.Nimesh Patel (project guide) for extending his immense support.

and technical standards. The programs include the product. the level of revenue will have an influence on the nature. • When the product is subject to the specific culture. packaging. Therefore.that is called Glocalization. brands. This is explained with reference to Indian culture. The importance of adapting a product or service to local country in terms of consumer needs and wants. It includes the marketing strategies to be followed for cross-cultural business and problems related to cross cultural 6 . the market infrastructure. 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. There are certain circumstances. Cultural preferences are a major reason for adapting products as they affect purchasing behaviour and product use. advertising and pricing concepts. To satisfy them. size and marketing of durable and non-durable consumer goods. tastes. the need to tailor marketing programs to local market is explained in detail. 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. • When the purchasing power of local consumers is different to that of domestic consumers as this has an influence on their purchasing behaviour. needs.Glocalization different countries exibit different peculiar behaviour. For the exporter. • When the product (industrial or consumer goods) is subject to local legislation and regulations. they have a different game plan. the level of expertise and education of users. 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. variations in conditions of use. strong cultural differences and government requirements is highlighted. The project begins by understanding the concept and evolution of Glocalization. language. It is basically a combination of globalization and localization. In the second chapter. which are tailored to different countries having different variables. differences in income levels. preferences. and habits of local consumers. It explains that a grey area exists between standardization and adaptation. This game plan is Glocality.

.19 ADVERTISING…………………………………………………………………………. PROBLEMS RELATED TO CROSS CULTURAL MARKETING…………………….31 COUNTRY OF ORIGIN EFFECT………………………………………………………. MARKETING STRATEGIES FOR CROSS-CULTURAL BUSINESS…………………34 2. DEFINITION OF GLOCALIZATION…………………………………………………..... the Indian menu offered. the positioning strategy. It includes why glocality is done in India and how glocality works in India. This could be their future marketing strategy in India. OVERVIEW OF GLOCALIZATION……………………………………………………7 CHAPTER 2 . 5. It shows how McDonalds have adapted itself in India and emerged as one of the fastest provider of fast food. TABLE OF CONTENTS CHAPTER 1 .22 PRICING…………………………………………………………………………………. pricing strategy and promotion and advertising strategy... the target market.Glocalization marketing. 4. its operations in India.3 3.1 1.2 2. McDonalds as a success brand. which show the importance of Glocalization in a more practical way.36 7 . 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.32 CHAPTER 3 .11 1. market research. 6. EVOLUTION OF GLOCALIZATION…………………………………………………. the glocalization process adopted by some of the MNCs in India is illustrated in detail. The study on McDonalds envisages the entry strategy in India through sound research and development.16 PACKAGING…………………………………………………………………………….INTRODUCTION…………………………………………………………….UNDERSTANDING CULTURE (In Indian Context)………………………34 1. The recommendation is analyzed in terms of the new product innovation. packaging and promotion in India. 3.TAILORING PROGRAMS TO LOCAL MARKET………………………. the project includes some articles. Then. This case study is explained in Indian context. PRODUCT MODIFICATION……………………………………………………………11 BRANDS…………………………………………………………………………………. Also. The next chapter is all about case study on McDonalds who has a global approach but customizes its menus to local culture.. 2.

.................. 4............... 3......................GLOCALITY IN INDIA………………………………………………………37 1... INTRODUCTION…………………………………………………………………………37 WHY GLOCALITY?.............Glocalization CHAPTER 4 ..ANNEXURE……………………………………………………………………66 CHAPTER 8 ..............................CASE STUDY ON MCDONALDS……………………………………………50 CHAPTER 6 ........48 CHAPTER 5 ...68 8 ................39 HOW GLOCALITY WORKS?........REFERENCES…………………………………………………………………..........CONCLUSION…………………………………………………………………65 CHAPTER 7 ...............................43 GLOCAL STRATEGIES FOR FEW MNCs……………………………………………............................... 2..

and media. They investigated large sums in brand building to tout the advantages of their standard market offerings. Dell Computer invites customers to specify exactly what they want in a computer and delivers a custom-built one in a few days. Levi’s is now able to produce customized jeans based on a person’s measurements. availability and reach of media. P&G. and business processes. personalize. allows a person to specify needs for a shampoo by answering a set of questions. distributors. 9 .Glocalization INTRODUCTION The old economy revolved around manufacturing companies whose main drive was to standardize production. and regulation from one market to another. For example. Similarly. or competition. government or industry regulations. and as their factories were designed more flexibly. on its Reflect. As companies grew proficient at gathering information about individual customers and business partners (suppliers. they increased their ability to individualize their market offerings. manufacturers hoped to grow and take advantage of economies of scale. product standards and requirements. distribution tactics will need to be tailored to local customer shopping patterns. programs will need to be tailored to local market conditions. Products may need to be adapted to different usage conditions. and dispatch over networks at incredible speed. In contrast. As the firm focuses attention on developing its position in local national markets and broadening its market base. Through standardization and branding. messages.com site. Advertising platforms and promotion themes need to be modified in the light of government regulation. and then P&G formulates a unique shampoo for the person. and customer response patterns. pricing needs to take in to consideration differences in demand conditions and price sensitivity. Information has the advantages of being easy to differentiate.demand. and customer preferences. while at the same time covering costs. Finally. competing and substitute products and services. retailers). the new economy is supported by information processes. customize. products.

of both universalizing and particularizing tendencies. Perhaps even more illustrative of glocalization: For promotions in France. The term combines the word globalization with localization. glocalization describes the tempering effects of local conditions on global pressures." The increasing presence of McDonalds restaurants worldwide is an example of globalization. the restaurant chain recently chose to replace its familiar Ronald McDonald mascot with Asterix the Gaul. a popular French cartoon character. At a 1997 conference on "Globalization and Indigenous Culture. while the restaurant chain's menu changes in an attempt to appeal to local palates are an example of glocalization. (An earlier term for globalization in terms of product preparedness for international marketing is internationalization).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." Robertson said that glocalization "means the simultaneity --. According to the sociologist Roland Robertson. 10 .the co-presence --. who is credited with popularizing the term. The term first appeared in the late 1980s in articles by Japanese economists in the Harvard Business Review.

so marketing tactics have to be adapted to reach the target market. ranging from regulation to differing consumer preferences. Typically. In other cases. Positioning and product design may. media exposure. a competitor can have preempted a copy platform. the broader the range of customers the firm aims to reach. industrial goods are the most likely to be successful in any globalization strategy as are modern technologically advanced consumer durables. for example. 11 . remain substantially the same. The need for modification is also likely to vary from one element of the marketing mix to another. government or trade regulations relating to product content and labeling. pricing. life-style patterns. with only minor modifications. including economies of scale in production and promotional costs. Differences in customer response patterns. or certain distribution channels. and distribution have to be adapted. as well as co-ordination and control of international operations. certain types of media or distribution channels may not be available or have the same reach in other countries. organizational structure. Consumers perceptions of product preference. Alternatively. Traditional consumer non-durable products are most likely to require customization due to national tastes and habits. and the heterogeneity of customer behaviour from one country to another also help determine the need to modify marketing programs. the more likely some adaptation of marketing programs will be required. Yet. Consequently. requiring changes in the firm’s marketing programs. presentation of a unified image across countries. Alternatively. some tailoring of programs to the local market is often needed. Standardization has a number of benefits. but product and promotional tactics have to be adapted. There are numerous barriers to standardization. A full decade has passed away since Levitt’s globalization proposition was issued. and easier transfer of ideas and experience. distribution might be the same.Glocalization EVOLUTION OF GLOCALIZATION In general. purchasing behaviour. total standardization is rarely desirable. the firm would prefer to standardize as much of the marketing mix as possible across countries. How have the multinationals reacted? Have they standardized or adapted? In general. In some instances. necessitate modification of programs. while advertising copy.

Schick has 62 percent. •Use by competitors One splendid example comes from Japan. 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. Gillette has a 10 percent market share in Japan (65-70 percent worldwide).S. differences in raw materials availability. 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.Glocalization brand recognition. 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. government required standards and regulations. 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. and selling Sensor in the same packages with the brand names in bold English letters and a 12 .

a strategy that failed because Gillette didn’t have the distribution network available to Japanese companies. 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. it should be able to globalize easily. Cisco discovered customer requirements varied from country to country. that cultural and competitive differences were less important than the similarities. Schick on the other hand. 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. The disastrous campaign resulted in the sale of the writing division. 13 . In the end. The homogenization of world cultures supports this strategy. Parker Pen provides ample ammunition that the opposite may be just as true. In Japan. the resignation of the CEO. the advertising “ tried to say something to everybody and it didn’t say anything to anybody”. The product is called FX in Japanese because Schick says it is easier for the Japanese to pronounce. Cisco sells an industrial product. The only difference in the TV ad is that the narrator says “the best a man can get” in Japanese. and the restoration of the decentralization approach. German customers had specific requirements.Glocalization Japanese version of it only in tiny letters in a corner. Graphic layout and photography was identical throughout the world. office buildings lack the space for installing electrical equipment.000 wholesalers. It doubled its salespeople and entertained wholesalers. French regulators insisted something French be in the product and demanded that Cisco test products at French-based facilities. Supposedly. Parker believed in the globalization gurus. Japanese managers place the routers on office desks. During the 1980s. The Tracer TV ads show a young Japanese actor shaving before taking his dog to the beach. The outcome still has not been decided but Schick has the edge. The Japanese also needed smaller routers with noiseless cooling systems that could fit under desks. has not used a foreigner in its ads for the past decade. “Make your mark with a Parker” on a global basis. Gillette tried to sell razors through its own salespeople. Schick sells razors through Seiko and 150. Twenty-five core categories were finally decided upon for 40 key countries. Parker chose a single ad agency and decided to use the motto. Many reasons exist for a standardization strategy. 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. However.

cultures are diverging in their attitudes while still modernizing. 14 .Glocalization A globalization of values is not generally occurring. Therefore standardization does not appear to be a realistic strategy in many cases. Yet. If this is the case. understanding of different cultures will become even more critical to marketers in the years to come. Does a middle ground exist? Yes. the opposite appears to be taking place. the pure adaptation strategy is costly and inefficient. a grey area exists between the two extremes--Glocalization.

The commercial from Coca Cola that showed 1. Sony sets the long-term strategy from Tokyo.000 singing children on a hilltop was edited 21 different ways for broadcast overseas. different types of jungle or local wildlife areas according to cultural preferences. Camel is a well-known company for its standardized approach. Camel's global campaign was adapted to different geographic areas: One part of the campaign was based on wilderness. act local' strategy. but culture and traditional values do not disappear. In most countries Camel cigarettes are promoted as a Turkish blend of cigarettes but in Greece. which it tailors to each overseas market. a Chinese fried rice. 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. a fruit-based shake is offered in Malaysia. consumers are beginning to adopt some of the same lifestyles. and tropic mint shakes in 15 . since few foreigners understood football nor knew who Joe Greene was. Instead. It also uses mutton pot pies in Australia and McSpaghetti in the Philippines. It is a 'think global. regional managers make their own product decisions locally. Reebok creates different localized commercials for many country markets and even uses different advertising themes. Glocalization realizes that perfect standardization at every possible level is practicably impossible due to the constraints discussed above. in Japan. Marketers must consider these differences when creating effective ads and relevant messages. the promotion is changed to an American blend of cigarettes.S. Just as it is not safe to say that all groups of people are the same. another term has developed in recent years called Glocalization. The theme remained but the boy. The basic ad is "Bo Knows" with Bo Jackson where recognizable players (internationally) exclaim that Bo knows (in local languages without subtitles). Singapore and Thailand. A berry-based drink is offered in Brazil.Glocalization GLOCALIZATION Due to the difficulties that a globalization strategy faces. McDonald’s introduced McChao. glocalization seeks uniformity especially in elements that are strategic such as positioning whereas the tactical approaches are localized. McDonald's serves coconut. Nike created a worldwide advertising program. McDonald’s offers a standardized menu but adapts to local environments. mango. 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.

These stores accounted for as much as two-thirds of Levi’s Brazilian sales. among the highest per capital soup eaters in the world. It advertises to Polish working mothers by emphasizing its convenience. Wendy’s serves shrimp cake sandwiches in Japan. Levi’s allow local manages to make decisions about adapting products to suit local tastes. In Poland. Levi's dominates with English language and music. the favorite pizzas are those with prawns and pineapples. It adjusted its menu in Quebec to include poutine.S. are out. Irish and Italians prefer creamy tomato soup. Campbell's introduced eight varieties of condensed zupa and flaki. In Australia's Domino's Pizzas. In China. fig and date soups are popular. In Mexico. due to their being endangered species. spinach. Domino’s Pizza in Japan offers such toppings as grilled chicken. corn. tuna and corn salad. Pizza Hut offers its Japanese customers barbecue chicken. Campbell's opened the Hong Kong kitchen in 1991 to adapt and create recipes for soup to reach the two billion Asian consumers. it sells Crema de Chile Pablano. In Brazil. Campbell's advertises its fifteen varieties of soup to Argentineans as the Real Soup. Campbell Soup discovered the English prefer a more bitter taste than Americans. The Japanese are anti-can (most Japanese walk to the market and don’t like to carry heavy cans). while it is upscale fashion statement in Europe. The Chinese average one bowl of soup a day. a French Canadian dish consisting of fired potatoes covered with cheese curds and brown gravy. Indonesia ads show Levi clad teenagers driving around Dubuque. a peppery tripe soup. radish and carrot soup. squid. 98 percent of Polish soups are homemade. stressing its list of fresh ingredients. It offers corn and chicken soup in East Asia. and macaroni salad. There. scallop broth.Glocalization Hong Kong. Australians prefer cream of pumpkin soup. many in small. rural markets. Campbell's sells soup in Mexico in cans large enough to serve four or five because Mexican families are generally large. onion. However. 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). 16 . Iowa in 1960s convertibles. watercress and duck gizzard soup. The average Pole consumes five bowls of soup a week—three times the American average. Levi Jeans are made in Japan to satisfy the tighter fit desired by Japanese consumers. burdock root. Donald McDonald represents McDonald’s in Japan because the Japanese have difficulty pronouncing the letter R. Levis is casual wear in the U. these decisions involve distribution. Levis developed its Femina jeans featuring curvaceous cuts that provide the ultratight fit traditionally favored by Brazilian women. potato. dog soup and shark’s fin. and pork. Germans want rice and Colombians want spice. Levi’s established a chain of 400 Levis’ Only stores. Campbell's soup is the king of adaptation. James Dean is central figure in all Levis ads in Japan.

Foreign eaters tend to go more for local fare. Whirlpool.S. Both are sold worldwide but they refer to different products in different countries. To them.. Nonetheless. Unilever’s TV commercials for Dove used the same theme and were identical but the actors were local as was the language used. It also has installed new equipment to its foreign operations to provide quality and consistency similar to that seen in the U. These handle only half (11 pounds) the capacity of the typical U. PepsiCo has a shrimp-chip venture in Korea and a squid-peanut snack for Southeast Asia.000 consumers in more than 30 countries in 1995. in Asia.S. Milky Way has caramel and chocolate. Whirlpool washing machines sold in Europe or the United States were not suited to wash the traditional saris worn by Indian women. fish flavors top the list. 8 times the world average. Some products have certain core technologies. 100 million bags were sold in 1995. 17 . Hershey chocolate bars taste bitter. local tastes still differ: in Europe. subassemblies or components that can be standardized on a worldwide basis.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. After interviewing 100. while other parts require adaptation to local conditions. Europeans view peanuts as something you feed horses. It is marketing all its brands of potato chips under the uniform Lay’s brand name. model. in response. In the U. Poles and Hungarians go for paprika flavoring. 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. in Europe it has no caramel while the European version of the Mars bar has no almond. PepsiCo introduced cheeseless Cheetos in China because the Chinese do not like cheese. PepsiCo has launched a seafood-flavored cheetos and is planning to build a new $30 million plant in China to meet the growing demand. Most of the rest of the machine is built from standardized components. Unfortunately the path is not as easy with Milky Way and Mars. Britain’s Marathon became Snickers and France’s Bonitos became M&M. American consumers partake of more than 20 pounds of salty snacks a year.Glocalization PepsiCo created a global brand of Lay's Potato Chips to enter the annual global market of $17 billion. such as Asian pellet snacks (processed chunks of corn or wheat). the most popular flavor for potato chips is salt and vinegar. Mars abandoned successful European brand names in the pursuit of standardized global brands: Raider was renamed Twix. PepsiCo determined that the potato chip was the most popular snack with a worldwide market of $4 billion.

is the use of a global theme with the adaptation as necessary around the globe to accommodate local tastes and requirements. dimensions and configurations of machines may vary from market to market (French want top loading washing machines. therefore.Glocalization Whirlpool has designed a World Washer. British want front loading ones. Even though the features. must be customized as local needs arise. much of the technology and manufacturing processes involved are similar. Whirlpool must have regional manufacturing centers due to varying size and varying consumer preferences around the world. 18 . although being a standardized product. Germans want high speed machines while Italians prefer slower spin speeds). the insides don't vary and both can be standardized and simplified into a common platform. a small stripped down automatic washing machine targeted to meet the needs of developing nations such as Brazil. Mexico and India. Even though the products that come out of the Italian and German plans are totally different. This. Glocalization.

information and ideas. automobiles with high fuel consumption.” . To counter the discovery that few 19 . the tangible product (packaging. Products that are marketed include physical goods. and the augmented product (installation. substantial costs. it is prestigious to own a car with a steering wheel on the left. however. the physical entity. have a prestige value in Europe by virtue of their lack of adaptation and the implied costs of maintaining and using such automobiles. to design and adapt products to different usage and environmental conditions in other countries. have to be weighed against the likelihood of greater market penetration as a result of product adaptation. although ill adapted to narrower European streets. (Free razors are given. The first decision to be made in drawing up plans for international markets is whether. In some instances. however in classic Gillette fashion. places. Gillette often has to sell the idea of shaving before it can sell its blades. training. such as Cadillac. facial hair is removed with a machete or a sharp edge of glass. as a lack of adaptation generates a prestigious image. It eliminates and reduces the potential for spreading product R&D and design costs and overheads over multiple country markets. after sale service. delivery and credit.S.Glocalization TAILORING PROGRAMS TO LOCAL MARKET PRODUCT MODIFICATION “Product is anything that can be offered to a market to satisfy a want or need. The costs of adapting or modifying products. as well as incurring delays in market entry and penetration. For example. Kotler A product has three major elements: the core product. Similarly. warranty). and how far.) In those cases where shaving is common. experiences. as the car has obviously been imported. quality. services. features. products are deliberately not adapted. blades must be purchased. events. and styling). Gillette sends a van from village to village carrying its salesmen and equipped with all the essentials. Modifying products to different market environment and usage conditions can entail. in Japan. properties. large luxury U. organizations.Philip. other factors (primarily economic) take precedence. To persuade these men that shaving can be easier and more comfortable (without losing its macho qualities). brand name. therefore. In some countries. persons. given higher fuel costs in Europe.

the Japanese tend to put their cars in front of a wall whereas Westerners are apt to use nature as a backdrop. cars are most often viewed in close-up. the company is now releasing as many as 50 new beverages annually with launch time as little as thirty days. Automobile styling shows distinctly cultural patterns. a fortified tomato juice called VI-ProMin was kept on the shelves for several years without success. Westerners are drawn to a muscular smoothness in cars while the Japanese reject animalist traits in their car and cannot accept the Western world’s attraction to leather. Americans design their cars to look their best from 20 to 30 feet away. In Japan’s tight streets. it is frontal. Nothing stands out on a Mercedes. they make more of it. Gillette introduced plastic tubes of shaving cream that sold for half the price of its aerosol. German taste is rooted in nature and its slow changes and enduring quality. if it fails. it is the whole picture rather than details which is desired. Coca-Cola. Conversely. 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. if it succeeds.Glocalization Mexican men who shave used shaving cream. fearing bad public relations if it were to acknowledge defeat: In the 1960s. thus the Japanese like ornament and creases to entertain the eye when viewing the car in segments. Thus Mercedes designs change slowly and must be carefully balanced to last as long as they do. When Westerners conjure up an image of a car. as would many Western companies. it is dropped. PRODUCT STANDARDS AND REGULATIONS 20 . stay with a product and try to make a go of it. After finally Japanizing. With the Japanese. The Japanese read personality and expression into the ‘face’ of the car. Japanese companies historically launch multitudes of new products and use the consumer marketplace in total as their test market. (a reference to shape and size of headlights and grill). All elements are carefully balanced. The product Prestobarba (Spanish for quick shave) was an instant success. Their concerns are whether the ‘eyes’ are too sleepy or awake and whether the ‘mouth’ is appropriate. it is from the side view.

and automobiles. for example. Products may also need modifications for usage conditions in different countries. automobiles. food. mothers. For example. In many Asian countries small compact package sizes in items such as detergents. sells a 50 ml size bottle of its Sunsilk shampoo and 75 grams bars of Lifebouy and Lux soap in India. the introduction of tighter European standards for pharmaceuticals has blocked the expansion of Indian drug manufacturers in these markets. products have to be modified to conform to national product regulations and quality standards. have blocked such European sports cars as the Morgan or the Lotus from competing in the U. product regulation may prevent a product from entering a specific national market. electrical appliances. or retail store outlets. Consequently. Unilever. Construction materials such as bricks and cement have to be reformulated for the Middle East to prevent drying out and cracking. market. Such regulations are most common in relation to products such as pharmaceuticals. The antipollution requirements for automobiles in the United States. which are required of suppliers by a growing number of firms such as DuPont. General Electric. machinery. CLIMATIC AND USAGE CONDITIONS Products also often need to be modified in order to operate effectively under different environmental or climatic conditions. ISO 9000. power fluctuations. and Philips Electronics. soap. and shampoo are popular.more than twice as often as most U. like electrical appliances or clothing. Similarly. 21 . modifications in size may be necessary due to differences in space available in homes. P&G had to make its Pampers diapers thinner. The International Organization of Standards has also developed a set of quality management standards. British Telecom. such as unpaved roads. Japanese mothers change babies diapers about 14 times a day.S. or in purchasing frequency and purchasing power. Products that involve potential safety hazards. for example. and other types of equipment may also need modification to deal with differences in the physical infrastructure. also often have to meet safety regulations. as higher priced brands are used less frequently and saved for “special occasions”. Trucks and automobiles may need structural reinforcement to cope with poor road conditions in countries such as India or Eastern Europe.Glocalization In some cases. In Japan. they wanted a less bulky diaper that could be stored more easily in the limited storage place available in the average Japanese home. and shortages.S. Trucks. In some instances.

Two versions were introduced: rich and regular (milkier). reflecting the fact their wrists are smaller than most Westerners. Non-American shoe manufacturers have also had to reciprocate to be successful in the U. depending upon the local market tastes. General Foods blends different coffees for the British (who drink their coffee with milk). Nestle and Coca Cola entered a joint venture to convince Koreans that canned coffee (warm or cold) is an alternative to soft drinks. GE Medical Systems designed a product specifically for Japan.S. Although Germans buy over 500. they found that most Englishmen prefer a light. Some of the important attributes include dimensions. Heinz modifies its ketchup by adding spices. Koreans drink only one-fourth of the Coffee Japanese do. companies get little of the business: toes in U. and Latin Americans (who prefer a chicory taste). Coke already has its Georgia brand and Nestle has Nescafe canned coffee drinks in Japan. Many Europeans think Hershey chocolate bars taste bitter. U. curry. Swiss watchmakers make smaller watches for Japanese consumers. 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. Nestle tried to sell instant coffee to England. 22 . capacity. and volume.S. boots are not pointy enough and American heels are perceived to be too wide. as their coffee habits had been developed during Second World War and heavily influenced by American troops. peppers. Local cultural tastes often have forced many international companies to modify components if not the entire product to be successful. size. almost blond coffee. their taste in coffee is similar to that of Americans. Different physical characteristics of consumers often influence product designs. French (who drink their coffee black).000 pairs of cowboy boots annually.S. the unit is smaller because Japanese hospitals are smaller and the typical Japanese patient is smaller. Italians dislike grapefruit-flavored Gatorade while Germans love it.Glocalization FEATURES AND SPECIFICATIONS Features are a combination of attributes.

energizing. milk-based products are usually consumed at meals and bedtime for their sleep inducing. a nutritional snack concocted from a mixture of dried small sardines and slivered almonds. Adaptation sometimes is necessary to succeed. For most Westerners. Television ads featured educational messages on how to use almonds in cooking. sausages. Heinz is teaching the rest of the world how to use ketchup. Americans prefer relatively sweet ketchup but Europeans prefer a spicier. almond miso soup. an injection will do. In Britain. soothing. often a major educational effort is needed. people prefer tablets while in France suppositories are preferred and in Germany. 23 . Blue Diamond exports to over 100 countries and assumes no two markets will react the same. and pasta. and Calmond. The French love questions on nightlife. Heinz also sponsors cooking lessons in Tokyo to Japanese homemakers on using ketchup as an ingredient in Western style foods such as omelets. In the UK and Holland. the nutritional values.Glocalization Sometimes the taste is unknown and must be acquired. questions on cricket are preferred to that of baseball. Japan is now the largest importer of Almonds. stimulating properties. and literature. relaxing properties. more piquant variety. art. In this case. the same products are consumed on the way to work and often away from home for their invigorating. In Thailand. 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.

efficient. well built. Mercedes may suggest a nononsense boss (person). or an austere palace (object). Viss in Germany. or design. As a result of separate marketing. a regional brand may have local features or a highly standardized brand may have local brand names. Jif in Britain and Greece. Benefits: Attributes must be translated in to functional and emotional benefits. high prestige automobiles. 3. Mercedes stands for high performance. symbol. The Mercedes represent German culture: organized. Attributes: A brand brings to mind certain attributes. Standardization of both the product and brand are not necessarily consistent. We would expect to see a 55-year-old top executive behind the wheel of a Mercedes. safety and prestige. a reigning lion (animal).” A brand is a complex symbol that can convey up to 6 levels of meaning: 1. term. 6. well engineered. Personality: The brand can project a certain personality. and Cif in France. The attribute “durable” could translate into the functional benefit “ I won’t have to buy another car for several years”. Values: The brand also says something about the producer’s value. 5. intended to identify the goods or services of the seller or group of sellers and to differentiate them from those of competitors. or a combination of them. Mercedes suggests expensive. Brands have staying power due to the promotional efforts expended by companies to create awareness and image for their brands. User: The brand suggests the kind of consumer who buys or uses the product. durable. The attribute “expensive” translates in to the emotional benefit “ The car makes me feel important and admired”. Culture: The brand may represent a certain culture. Unilever sells a cleaning liquid called Vif in Switzerland. high quality. not a 20-year-old secretary.” 4. 2.Glocalization BRANDS “The American Marketing Association defines a brand as: a name. 24 . 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.

the perfect solution in a society where individual preference is muted. 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. Yet. Johnson’s Pledge furniture cleaner is called Pronto in Switzerland and Pliz in France while retaining its American brand name in the U. Dcm-Toyota. prestige. The brand name could already have been registered with another local or international company. because of a ban on the use of foreign brand names. Disney. many consumers must consult a reference work to guarantee its prestige.Glocalization Brand names often are difficult to standardize on a global basis. Bluebonnet. The Japanese lean towards pastoral names or names of girls for their car models: Bluebird. Toyota. and American image. The main reason the older Japanese rely heavily on brand names is that in their 25 . They do not rush out and buy just any recognizable brand. IBM. Lehar-Pepsi. Anyone’s list of the top ten global brands would have many of the same companies: Coca-Cola. Sunny. Before making a purchase. Other name changes are not necessarily voluntary: In India. European consumers buy American. Gloria versus animals and power names for American car models: Mustang. the idea of diet implies sickness or medicine. Nestle. Translation problems could render the translated version obscene or with a negative connotation (local slang or idioms). European teenagers wear baseball caps (backwards of course) and Football jackets over their basketball t-shirts. The Japanese have taken this fanaticism a step further. they buy catalogs filled with photographs of accepted brand products. McDonald’s. Goodyear sells its tires in Germany with images of Indy Cars. they will snap up anything that sports the reassuring logo. As soon as consumers are confident the logo means status or prestige. Cadbury followed a fragmented branding approach. The UK chocolate company Thorntons experienced difficulties in France. Budweiser has made a name for itself as a premium brand with an American ad campaign. retaining the brand names on the various companies it has acquired in Europe. many brand names are worth their weight in gold. Cougar. Cutlass. hybrid brand names are the norm: Maruti-Suzuki. Coca Cola changed Diet Coke to Coke Light in Japan. The first sports car Nissan sent to the United States was named Datsun Fair Lady. Sony. Violet. for its quality. The Japanese worship brand names. Pepsi-Cola. branding is not a guarantee for success in the global market. Japanese women do not like to admit to dieting and in Japan. Kodak. Global brands carry instant recognition and especially for international travelers represent a risk avoidance strategy versus using local brands.K. Different reasons for this brand loyalty exist according to age groups. However. Kinetic-Honda.

Consumers associate product quality. 26 . They need to see the company as trustworthy and reliable in order to evaluate a brand favorably. being unsure of exactly what they wanted. The youth tend to prefer brand names because of their fashion consciousness. they opted for the safety of a famous name.Glocalization formative years (during The Second World War and the years of postwar poverty) goods were scarce and few opportunities existed. and reliability with the image of the company that produces it. safety.

has negative connotations in a number of South East Asian countries. material used for the package. number of units within the package (the Japanese word for four sounds like the word for death. Kotler Typically. Where sales volume is low. yellow may arouse superstitions and needs to be avoided in certain markets. As industrial products are far less culturally grounded. package labeling and assembly or usage instructions need to be transported into the local languages. it symbolizes danger in Malaysia. Ikea. The latter must involve itself with language. In addition. the majority of discussion will deal with consumer products. Similarly. 27 . therefore. and delivery functions). such as French or Italian for perfume. a firm may adapt such simple solutions as pasting on a label with appropriate instructions.Glocalization PACKAGING “Packaging is defined as all the activities of designing and producing the container for a product. for example. don’t sell well in Japan). it is rarely an appropriate colour for packaging. content reporting. Yet consumer products can be marketed by self-service or by over-the-counter. products grouped in fours. clothing. Packaging considerations depend upon the market for the product: in the case of a product targeted at businesses. Colour associations also may trigger a need for modification. packaging is usually plain and brand and functional in nature (safety. for example. the packaging becomes part of the promotional effort.” -Philip. or accessories. provides visual directions for the assembly of its furniture. or including a translation with the standard labeling. distribution. Green. size. shipping. colors (yellow flowers used in a trademark were rejected in Mexico where a yellow flower symbolizes death or disrespect) and labeling on the package. Visual directions have also been utilized. 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. aesthetics. In some instances. similarly the Dutch prefer to shop daily for fresh items and prefer small packages). use of foreign language carries a prestige or quality connotation. a firm must pay attention to the symbolism associated with packaging and language. security. especially where there are dosage or usage instructions. For consumer products. Consequently.

In France.Glocalization and government requirements. They found as much as one-third of the bread was wasted. only 2 percent was packaged in the former Soviet Union. the poor man’s aerosol. product names must be specific. For example. Packaging can become an integral part of a product’s success or failure. consumers in Germany and Switzerland buy these same products in tubes. where the block toys reside in a storage case in the shape of a bunny—failed to impress the Japanese. Aunt Jemima pancake mix and Ritz Crackers are sold in cans rather than in boxes because of the high humidity. The law also insists that companies collect their used packaging for recycling. a move Heinz matched. In Saudi Arabia. Although 95 percent of the food is packaged in developed countries. Belgium (French and Flemish). a novel idea at the time. it sells Right Guard deodorant in plastic squeeze bottles.S. local Amora ketchup overtook Heinz by introducing plastic bottles resembling rocket ships. Packaging may not even exist in developing or undeveloped countries. Bilingual packaging requirements exist in Canada (French and English). In 1991. Canadian regulation requires deposits on beer bottles. In Panama. Russian consumers responded well. Government requirements can also greatly influence the product’s final design. law levies taxes on certain chemicals destined for toxic waste dumps. Whereas. German law requires that at most 28% of all beer and soft drink containers can be disposable. 28 . A law in Denmark requires that drinks be sold in refillable bottles. Lego’s Bunny Set promotion. Americans prefer to buy mayonnaise and mustard in glass containers. Gillette sells Silkience shampoo in one-half ounce plastic bubbles in Latin America. 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. In Australia. The consultants recommended plastic bags as a means of keeping the bread fresh. 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. The Japanese considered the bunny pack as superfluous and objected to the notion of being forced to waste money on unwanted products. the number of cigarettes contained in a package must be printed on the package front. and Finland (Finnish and Swedish). Andersen Consulting assisted the Moscow Bread Company in improving its distribution of bread in Moscow. Consumer image of packaging differs across cultures. U.

as the triangle is considered a negative shape in those countries. in the U. they feature a symbolic icon— a towel and arrow that suggests absorption. however in many Asian societies. the company consequently began using a symbol. The Swastika is associated with Nazi Germany for most Western societies. The Japanese feel that if you do not go to the trouble of presenting your ideas properly. it is expected to be aesthetically pleasing as well as functional. Japanese consumers also place heavy emphasis on the packaging and overall appearance of products. thus it is a negative image. the execution cannot be overemphasized. When Scott Paper Products (Scott towels) are sold overseas. Specific kinds of strings must be used for specific items. Packaging paper used for wrapping and bags are of excellent quality. and wrapping an item in three layers is standard practice. Packaging must be beautiful and of high quality.Glocalization Companies that sell brand name packages are beginning to use symbols and not words on their labels. it is a sign of good luck and perfectly acceptable to have on a package. the presentation is as important as the event itself. 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. symbols too can have translation problems: Always packages feature a dove. 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. how you give the message. However. Marketers should avoid using triangular shapes in Hong Kong.S. it symbolizes peace and serenity. The product must be wrapped and tied in the right way. the mostly uneducated consumers thought the jars contained ground-up babies. Frango Chocolates (candy sold by Marshall Field’s in Chicago) did not go over well in Portugal: ‘Frango’ means Chicken. the dove is the symbol of death. how can they be any good? 29 . however. form is as important as function. Korea or Taiwan. in Japan. a poorly packaged product conveys an impression of poor quality. The typical Japanese consumer will not purchase a product that is not well wrapped. The packaging. To the Japanese.

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. This local environment could be divided in several components to which the localizing translator must pay careful attention: 30 . which can have serious sequels financially speaking. The general framework for localizing advertising would be that of communication and marketing strategies adopted by multinational companies especially French multinationals.Glocalization ADVERTISING “Advertising is any paid form of non personal presentation and promotion of ideas. International advertising consists of using the same strategy of communication in all targeted countries. Nevertheless. to this type of standardized strategy.” -Philip. The advantage of this approach lies mainly in the economies of scale generated because of the standardization of the campaign. 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. It is indeed very risky not to adapt communication to some local markets especially in countries where the cultural tradition is still very present. Kotler The globalization of economies and trade intensification lead companies to communicate with consumers of different languages and cultures. goods or services by an identified sponsor. The relevance and the influence of the local culture are still very substantial in numerous countries around the globe including in Western Europe. 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. the elements of this debate should be defined and elucidated briefly. the trend towards localization is gradually gaining ground. But it is also obvious that the risks of a forced standardization are not insignificant. Faced with a potential failure.

tricycles. it developed 3-D neon hoardings for the metro. It is not unusual for consumer product firms such as 31 . Share my Coca-Cola” based on a 1971 commercial first used in Spain but adapted to the Indian launch using Indian models. In short. For example.  The political-legal component: which includes the local particularities stemming from the nature of the political system.Glocalization  The socio-cultural component: which includes the local particularities stemming from religion. The trucks had dynamic digital displays on each side. 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. while the tricycles had huge red Coca-Cola umbrellas. In other cities in India. since TV ownership is relatively low in India. as well as specially designed iceboxes to keep Coke bottles cold. in relaunching Coke in India in 1993. as well as digital hoardings for its trucks and dynamic display boards for small retail outlets. and handcarts flooded the streets of Agra. The localization of advertising campaigns consists of adapting the company's communication while taking into account the above-mentioned parameters. heavy emphasis was made on signage and outdoor display. On the first day of the launch. 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. Communications strategy and promotional tactics often need to be tailored to specific foreign markets or countries. social and commercial habits. Retailers were provided with special display racks for Coke bottles. Coca-Cola used a dramatically different type of campaign from its usual heavy TV advertising approach. a cavalcade of trucks. the restrictions imposed on advertisements and the regulations related to information and to certain products (such as spirits and tobacco). the stage of opening onto the world. The launch took place in Agra. the site of the Taj Mahal. rules of conduct and ethical norms. with horns blaring to announce the second coming of Coke. this component is related to the main features of the hosting culture and society. In Mumbai. messengers on motorbikes sped to bazaars in various parts of the city. mores. Instead. Coke made extensive use of outdoor advertising and signage. specially designed three-wheeler vans. Mass media advertising is especially effective when marketing consumer products. releasing red balloons to announce that the Coke bottles would shortly be arriving. “Share my Dream. At the same time. This was backed by the TV launch commercial. alternatively showing the Taj Mahal and the Coca-Cola logo. Advertising is the most widely used promotional tool.

entire industries rely upon advertising. Advertising is used to pave the way for the sales force. its role depends upon the use of and preference toward the other elements of the mix within a country. it promotes specific ideas. Yet. radio. Advertisers must know who their customers are likely to be. and billboards). it is a non-personal presentation. newspapers. be aware of the constraints that affect the communication. and create goodwill for the company. improve brand image.Glocalization Proctor & Gamble or Unilever to spend ten percent or more of their revenues annually on mass media advertising. In the United States. or services through the mass media channels of communications designed to reach the general public (including but not limited to television. 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. and it must identify its sponsor. the individual or organization that pays for the advertisement. goods. Advertising has four basic features: it is a paid presentation. 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. 32 . In every country. to gain distribution. The multi-billion dollar commercial television market is funded entirely on mass media advertising. magazines. is not only the most visible but the most culture-bound of the firm’s marketing functions. develop effective communications with those customers. advertising and promotion. advertising is just one element of the marketing mix.

or illustration. 33 . except for translation when needed. In Poland. The visual element in an advertisement is the element most amenable to standardization across cultures. sometimes with full text. English-language ads are quite common throughout the world. Levi’s overcame Europe’s obstacle of many languages by creating advertisements that consisted solely of visuals and music without any language references. using 1960s rock music and nonspeaking actors in often amusing situations to promote the rugged American virtues of its jeans. which prohibits them. copy. John Deere promotes its products with a globalized single strategy advertising campaign because the nature of the product. laws force them to adapt: MTV Europe is required to black out pan-European low alcohol beer commercials in Norway. commercials lyrics must be sung only in Polish.Glocalization Standardization of Advertisements: A standardized advertisement is an advertisement that is used internationally with virtually no change in its theme. which is unsupportable in some markets 3) If it defies local customs and regulations or ignores the efforts of its competition. other times with only English brand name with the main information in the local language or even the two languages combined. Similarly. However much as MTV wishes to standardize. Campaigns beamed to Brazil must be modified to include local content. In an effort to standardize. especially in Europe and Latin America. Teens) and those products that can be promoted via image campaigns (Luxury products and High-tech products). Standardized advertising strategy becomes impossible if: 1) Various national markets are in different stages of maturity 2) The idea depends on a large budget. Levi Strauss uses the sublingual. Australia prohibits all imported advertising so advertisers have to reshoot commercials with Australian film crews and actors. the tractor. MTV Europe has 200 advertisers almost all of whom run unified English language campaigns across its 28 nation broadcast areas. is such that it perceived similarly in nearly all markets. Standardization is easier for new products. Products suitable for standardization include products for which audiences are essentially similar (Urban. Elite.

Comparative ads in Japan are not considered good taste and testimonials are seen as pushy and phony. vague and indirect messages are used. and Greece. 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. for example. gifts. Try as they may. is restricted in a number of countries in order to ensure fair competition and protect consumers. while in the United States coupons are a major form of sales promotion for consumer goods. McDonald’s 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. Japanese advertisers suggest instead of persuade.S. Germany. Cheer detergent was initially advertised in Japan using slice-of-life television commercials similar to those used in the U. Responsibility for sales promotion is typically given to local management. Coca-Cola’s theme of: “Can’t beat the feeling” is the equivalent of ‘I Feel Coke’ in Japan. not 30 seconds in length because some countries wanted one second of silence at the beginning of the ad. ‘Unique Sensation’ in Italy and ‘the Feeling of Life’ in Chile. 34 . they must be limited to 5% of product value. Coca Cola’s classic children on a hilltop commercial was edited 21 different ways for broadcast overseas. Premiums and gifts are also limited in a number of countries. To attempt to force standardized messages onto unreceptive audiences will only result in failure. and games. Messages must be adapted according to local culture.Glocalization Yet. Commercials in other countries had to be 29. In France and Greece. and that opportunities to standardize sales promotion techniques across markets are limited. they are banned in Austria. pure standardization is rarely utilized. adaptation becomes imperative. For example. and in Italy to 8%. Use of other sales promotional tools. such as coupons. Again such restrictions imply that sales promotion tactics need to be tailored to specific countries.

Korea is a word-of-mouth advertising country: a customer’s testimony is more effective than television or newspaper advertising. Chinese consumers tend to rely more on word of mouth communications. Advertisers that understand these differences succeed. the U. has five to ten times more comparative advertising. In Japan. Korea includes the price 38 percent of the time while other countries do so less than one-fifth of the time. Obviously. However. Nonverbal or visual advertising is most likely to satisfy a company’s global market objectives. Koreans value the testimony of a friend. it should be noted that body motions are interpreted differently among cultures. or in public places. France uses the aesthetic visual proportionally higher. In India. in movies. the concept of family is important to Chinese and thus played up in advertisements. Symbols are not universal: snakes symbolize danger in Sweden while they represent wisdom in Korea.S. or opinion leader. Those that ignore them fail. 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. kissing is considered offensive and not seen on television. family member.Glocalization CULTURAL INFLUENCES ON ADVERTISING The way cultures react to communications and messages differ. 35 . pointing to one’s own chest with a forefinger indicates that the person wants a bath. Likewise. Indian visuals contain a disproportionately high percentage of children. these differences reflect cultural differences between countries.

S. This allows even small stores to advertise to a limited area with a minimum outlay. they are very common in Japan because of the high reliance on public transportation and the long commutes for the typical worker. businessoriented. The average Japanese consumer is an avid television watcher and newspaper reader. especially in crowded cities.S. Southern and Western Europeans like to watch TV while in north and central Europe. Rather than 2 percent of all spending by smaller and localized users.000 copies sold out immediately.. Newspapers are popular in Scandinavia and Germany (70 percent) whereas only 15 percent read a paper in Portugal. the main target was intelligent. cosmetic companies. 36 . with business managers and college students secondary. With traffic clogged main arteries with slow moving traffic at nearly all hours of the day. “Transit advertisements” are printed advertisements that are displayed in public transportation such as railway cars and buses. Because the themes of these publications provide psychographic information. The Japanese version presented to readers a comprehensive international news magazine that took stories mainly from the U. Wilkinson uses puppet shows. In Mexico. outside advertising represents about 5 percent of advertising spending with usage by all sizes of companies. billboards provide a large captive audience. Major users of transit advertising include magazines and publishing companies. radio is the most important medium. The fold-in advertisement for newspapers (orikomi) is widely used. and numbers continue to grow.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 Japan. over 200 new magazines are started annually. Mexicans also enjoy being outside and are considerably more than Americans. white-collar workers. it is possible for manufacturers and suppliers to utilize them strategically besides simply advertising in them. billboards are effective and efficient advertising media. and hotels and restaurants. and more than half of these are either fashion-oriented or related to consumer life. Outdoor advertising is prevalent throughout Eastern Europe. In India. as in the U. In many parts of rural India. its 150. television does not exist. Japanese magazine advertising is more informative in nature. Newsweek successfully launched a Japanese version in 1986. The only forms of advertising are ambulant theaters that show movies from village to village. major retailers. domestic edition and placed emphasis on international news. food companies.

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, customer’s 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 McDonald’s 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 consumer’s 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 TV’s, 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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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. China has launched a “buy Chinese” campaign. Made in Germany products are more highly regarded by American than French consumers. France with Perfume. and America for Cigarettes. and the image of the company and its brand influence the magnitude of the effect upon the global consumer. a premium price may be charged. 40 . This effect does exist. Wine and Cheese.Glocalization COUNTRY OF ORIGIN EFFECT The country-of-origin effect is any influence that the country of manufacturer has on a consumer’s positive or negative perception of a product. The bottom line is that people perceive that the Japanese car is of better quality than an equivalent American car. The Plymouth Laser and the Mitsubishi Eclipse are identical sport coupes built by Diamondstar Motors. Industrialized countries generally have the highest quality image.A. The cars sell for approximately the same amount. Italy with pasta. Eclipses outsold the Laser and the Eclipses always received higher customer satisfaction ratings. the type of product. Made in England is more favorably perceived by the French than Made in U. Consumers have vague but definite stereotypes associated with various countries and products. 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.S. However. Scotland is associated with Scotch. The country. American and European consumer products have become so popular in China that they have eclipsed their Chinese counterparts. This effect can also potentially cause the near extinction of local brands if they are deemed inferior. An Italian Whiskey or German Wine or Scotch perfume would be negatively influenced by the effect. In countries where one’s image is high.

and chain restaurants. 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.Glocalization Typical Japanese consumers have an ethnocentric attitude. 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. Oftentimes they quickly reject foreignmade items. The American image is represented by colas. it must be bad. in favor of locally manufactured goods. The European image is represented by Mercedes Benz and Wedgwood. cigarettes.) 41 . As more Japanese travelers are introduced to foreign products. they tend to return home demanding these items. foreign products are thought to be appealing in terms of design and individuality. Ads for Coca-Cola and McDonald's successfully use this Japanese imagery. A reverse ethnocentric effect occurs as well: at the Moscow Pizza Hut. regardless of quality. jeans. However. Most Japanese have an exotic image of foreign goods but still distrust products not made in Japan.

It is cumulative as it is based on hundreds or even thousands of years of accumulated experiences. age. For example. It facilitates communication as it develops common habits of thought and feelings among people. Culture encompasses norms. It is socially shared through interaction. art. Generally in India. in the west. It is relatively stable and somewhat permanent. in USA even elderly women use lot of cosmetics. Culture is prescriptive. qualification will vary drastically between two countries. while the accessories wore with them will be limited. the elder of the family will decide on the behalf of the rest of the 42 . French men are very liberal in using cosmetics. 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. While in India. Market segmentation on the basis of economic status. Differences also lie in the perception of the same product or product categories. if properly used. customs. women tend to believe in keeping more number of sarees or dresses. Language. Next area in which marketing strategy will differ is consumption pattern. women tend to keep limited number of dresses but they tend to wear matching accessories. gender. While in India women aged sixty plus may not be using cosmetics. Another very important category where a difference may arise is the decision making process. MNCs should learn the typical words. as a person absorbs the values and traditions in which he is raised. their meaning and usage of the local language.Glocalization 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 adapts to new situations and sources of knowledge. values. Although India is a hot and humid country. MARKETING STRATEGIES TO BE FOLLOWED FOR CROSS CULTURAL BUSINESS Since language is the most compact way of communicating. consumer of any country could be made at ease with the foreign product. It is enduring as it is passed on from generation to generation. It is subjective and people of different cultures have different ideas about the same subject. Culture is gradually learned. Culture is dynamic. It also represents the way of life and thinking patterns that are passed on from one generation to the next. morals and laws. It prescribes the kind of behaviour that is acceptable in a society. may be more than his female counterpart. people still prefer to use more of talcum powder as prevention against sweat than deodorant.

They purposely use American models exhibiting typical American style. Keeping these things in mind. Generally where the consumer has very rigid habits. Some marketers prefer to use an universal message all over the world while others prefer to develop country specific ads. Lee and Coke both are American MNC’s but have a very different approach towards their cross-cultural consumers. While the families in the West are more nuclear. Barbie Dolls Company also falls in the same category. wearing Lee Jeans. global marketers should develop strategies to influence the buying behaviour.Glocalization family. Coke always uses local heartthrobs (Hrithik Roshan and Vivek Oberoi) as their models. the male earning member will decide. Other examples are. 43 . one will be transported to the American environment. Thus. If not the elder. McDonalds always develops a local ad. For example. for example advertisers of Lee Jeans. The message is clear. but within the nuclear family structure the decision tends to be collective. the advertisers modify their ads to suit the local taste. 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.

One mix of promotional appeal and pricing strategy may be highly successful in a Latin American country but a failure in an European country. problem of inventory. Many a times these countries suffer from logistics problem. The third problem id how to price the product. the word clock sounds like the word death in Chinese. distribution channel. First is how to promote the product. Besides that. although the initial cost may be higher as it involves costly and time-consuming market research but in the long run it pays off. warehousing and storage. 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. For example. The message passed across should be correctly interpreted and not misunderstood. thinking an increase in price as exploitation by the multinationals. What might be taken as perfectly decent in one culture is taken vulgar by another culture. People may react differently to an identical price change. Certain words may sound perfect in some language while not appropriate in another. The concept of sache and pouches for every product from shampoo to tomato puree has been an instant success in India. one will face three types of problems. Let us discuss them one by one. A classic example of this is our own country. economic considerations do not allow the consumer to buy in large quantities. Special effort should be undertaken to cater to local taste and preference. The second problem is how to distribute the product. what commission to be given to the intermediaries. This will be related to the promotional appeal. This is particularly true about developing economies. 44 . and smaller packages are instant success. To launch a product in another country. pricing strategies. 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. what should be the introductory price. how should the price of the matured product be changed by a MNC.Glocalization PROBLEMS RELATED TO CROSS CULTURAL MARKETING: Global marketers have to device special marketing strategies to cut through the cross-cultural barriers.

This transfer issue is integrally connected with Globalism. one can believe that most products and promotions are easily transferable with or without any modification among the subsidiaries of MNC’s. Those who can deliver what the people want and can delight the customer. Given such experience. as technological competitiveness is making the global marketplace cutthroat. McDonalds. are the market leaders. Today companies operate in such a marketplace where survival of the fittest is the law. since the intermarket transfer of products opens opportunities to standardize brand images through promotions. the explosive growth of global trade and international competition. As this transfer shows basic similarities among markets. To capture the Indian market. profitable segment for which they do not have any products. 45 . It is becomes a viable proposition only when MNC’s find unique. The other reason is technological change. Indian market is also changing very fast. Anyone travelling abroad can see the Coca-Cola. Coca-Cola and Pepsi sold in 150 countries and promote their product in similar fashion in almost all the countries. national economy and marketplace are undergoing rapid and wrenching transformation. One of the reasons is Globalization. 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. Pepsi. CURRENT INDIAN SCENARIO: In the current scenario. Several reasons could be attributed to these changes. To win companies are coming out with various new strategies. Market success goes to those companies best matched to the current environmental imperatives. which is an important factor.Glocalization GLOCALITY IN INDIA BY MNC’S INTRODUCTION: Product and promotion transfers are the essence of MNC marketing. Indian as well as MNC’s are using all of their resources. Rarely companies think about developing new products. Products transfer also impact promotional strategy. Sony and Kentucky fried chicken everywhere.

they realized that the Indian marketplace is different ball game they were incurring huge losses. Then they changed their outlook. These companies have realized that survival and success of a MNC depends on localization. But there entry was a failure. These companies have global products but their marketing strategy is based upon Indian environment. as they have wrongly calculated the market size and installed huge capacities. he is the winner. but plan and act Locally”. these global monoliths started looking like a yet another company in the market place. 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.” This in-turn resulted in a hypothesis "think globally. if they command even a small share of the pie in the initial years. legal and social realities. the market size assumed by them turn out to be an over-estimate. whoever provides value for money. 46 . as they thought that the market is huge. India has attracted several MNC’s. political.Glocalization Indian market is no longer a sellers market. 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. you are bound to fail.for India strategies". By the time. This has converted the market in buyers market. 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. it would be good. Companies have huge idle capacities. that is local. but plan and act locally”. These companies follow the principal of "Think Global. If you do not change according to the circumstances. Being one of the biggest consumer markets. They came here with high enthusiasm. as well as "made for India marketing strategies. These transnational have learned an overwhelming lesson that to succeed in India they have to craft "Made.

Why companies are following "Glocal Marketing" in India is due to several reasons. these marketing strategies are the tools of MNC’s. This is done locally and if company has any such product it can be transferred. 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. To satisfy them they have to have a different game plan. It helps them to decide their Market segment. It is the whole business seen from the point of view of its final result. With this. otherwise it has to be developed locally. which are coming to India. This game plan was glocality. As establishing a brand is a costly affair. It is also easier for companies to transfer products from their parent firms as it reduces the risks of product failure. It also provides them insights about the future market condition. MNC’s have found that Indian consumer exhibits a peculiar behavior. MNC companies want to have a loyal customer as the outlook of these companies. However. the market screening and transfer process begins with market need diagnosis. that is. here comes the differentiating factor. Business success is not determined by producer but by the customer. it is necessary that a proper product be launched in the market. Target markets and market Positioning. MNC’s face greater number of competitors. MNC’s source their products from abroad or on Original Equipment 47 . Thus. from the customer’s point of view. is long term. a few are listed below: 1. These marketing measures takes care of MNC’s Global value proposition as well as helps them to come out with certain strategies so that they can compete in the market. To find out the product acceptability. So it is profitable for an MNC to launch its Globally accepted products wherever they go. MARKETING’S CRITICAL ROLE IN ORGANISATION: Peter Drucker has said." Global markets mean a much larger markets for goods and services. "Marketing is so basic that it can't be considered a separate function.Glocalization WHAT DOES GLOCAL MNC’s MARKETING MEANS: Glocal MNC’s marketing is specifically crafted "MADE-FOR INDIA MARKETING STRATEGIES".

MNC’s have realized that that the perspective an Indian consumer about Quality is poor. To educate Indian customer is a knew task for these MNC’s. 4. as he just wants basic functionality from the product. These companies have increasingly realized that what a customer want in India is different. by talking about Quality keeping Indian social environment in to consideration. thus to have a Glocal marketing strategy is very important.96 Billion). as marketing is a very important part of organisation. it became imperative for MNC's for adopting an Indian mask. Thus they have to adopt a "Made for India Strategy". material comfort. They have to provide what customer wants. SERVICE AND VALUE: Companies have to be receptive to new ideas. He saw no difference between a Lifebuoy and a Lux soap he has the same value for these products. 2. 3. success but still he/she is family oriented.e. Truly Indian market is not price sensitive but as the customer want value for money. IBM suffered huge losses ($4. because they were myopic.Glocalization Manufacturer basis or they are manufacturing it at their plants in India. 48 . Therefore. as none of the Indian Company wanted to talk about that thus the market is price sensitive. They have realized that the cultural values of an Indian are different from his US counterpart. BELIEFS AND ATTITUDE ABOUT MNC’s: 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. An US citizen want achievement. socially compliant. Being global monolith’s it is not new for them. In 1992. The logic was that an MNC has ruled India for years and it was perceived as tantamount to repetition of the story. TO BUILD CUSTOMER SATISFACTION THROUGH QUALITY. CULTURAL AND SOCIAL VALUES: They have realized that cultural and social values play a significant role in Indian buying behavior. To be successful MNC’s have to be focussed. as it was necessary to communicate it in Indian way i. They also realized that Indian customer do not know what the quality is so he/she is satisfied with whatever he/she is getting. but to realize it took a few years. whereas an Indian is religious. success freedom. want to have achievement.

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

merchandising. it costs roughly Rs 1 crore to promote a consumer durable inside a state. 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. This includes the expenses of advertising in vernacular newspapers. Therefore. HOW GLOCALITY WORKS: 50 . The company found that a campaign like this could reach millions. television spots. in-cinema advertising. Then they developed products like Chocos biscuits and cereals like mazza with ethnic flavor of Elaichi. "According to our estimates. According to research by Anugrah-Madison. van operations. At the same time companies have realized that rural advertising expenditure per customer is significantly lower than the urban Marketing." says MD of the company. radio. INCREASED ROLE OF RURAL MARKETING IN PRODUCT SUCCESS: 70% of Indian customer lives in rural parts of India and this market is untapped.Glocalization palate of an Indian. Moreover. a similar urban campaign may cost twice as much. rural India is a target market for a large number of companies. 9. coconut. rural advertising may actually generate more purchases. Result: they failed. 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. kesar and rose. and point of purchase promotions. since various products have reached saturation levels in urban India.

when they came out with their small car. They started selling the concept of 51 . as well as they subsides a competitor. However. this positioning was a failure. BY COMMUNICATING AND CHANGING QUALITY PERCEPTION: . 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. 3. there is a trade-off between Quality a customer perceive and a company wants to communicate. These companies have increasingly realized that they cannot do it alone. Like when Daewoo has launched its car Cielo they have communicated the technology of Multi-point fuel injection system. Low priced TV king Akai (CEO of Akai says the way they entered Indian market was not appropriate) is coming up with TV’s in premium segment including Plasma TV.MNC's are coming up with new technology in India and they are properly communicating it to the customer. Thompson are not selling their products at lower prices still they are gaining market share at the expense of Indian companies like BPL. BY PROPER COMMUNICATION IN INDIAN LANGUAGE: - With the products prices MNC’s has they realized that it is difficult to sell them in Indian market. Samsung. The benefits are manifold as their JV partner has Insights about Indian market: they can easily negotiate with the Government. AT&T. A local partner has acted as a guide to these transnational through the maze that is Indian market is.Glocalization 1. In this context. an established distribution network. we can say that these MNC’s are Glocalising by hiring Indian professionals or with a JV. Thus. to succeed they have to have a strategic alliance with a local partner sometimes even with a competitor. Therefore. Now they know the difference between the products and the utilities derived out of it. BY HIRING INDIAN PROFESSIONAL AS WELL AS TIE-UP WITH INDIAN CORPORATE: - Global markets mean a much larger markets for goods and services. MNC source their products from abroad or on Original Equipment Manufacturer basis or they are manufacturing it at their plants in India. Videocon. Customer understood the benefit of such technology and the benefit. 2. TV’s like LG. Maruti 800 segment is no longer the highest selling car segment in India. they positioned it as a Family car. Lifebuoy now enjoys –2% growth as compared to popular (priced between 8 to 12 Rupees) 25% and premium 15%. now the so called Zen segment is coming up. have realized that they can't achieve dominant position without forming strategic alliance with local or domestic players. the perception of the Indian about the desired product is changing. Philips. Giants like IBM. Siemens. With this MNC’s face greater number of competitors. Thus.

villagers are using soaps like Nima rose. LG spent $50. They are happy with such a 52 . So last year. Indian’s are socially compliant. These products are given names having a tinge of Indian-ness like McAloo. Indian customer started asking for value for money. Villagers are constantly looking forward for new branded products. LG's Sampoorna. The focus of MNC’s was to change the Indian customer outlook about quality. he is willing to pay more if he sees value. What can one infer from these incidents. even when they can use locally manufactured very low priced soaps.Glocalization truly quality by proper communication. However. BY RURAL MARKETING: . McDonalds has recognized the preference for vegetarian foods among Indians thus they have included vegetarian foods in there menu. He wants to for the basic functionality. He does not see any value in frills associated with the products.000 (Rs 21 lakh) developing a unit that would have on-screen displays in the vernacular languages of Hindi. As the rural customer wants value for money. Perhaps a more important aspect of hooking rural customers was rejoicing the TV set to appeal to local needs. That is not necessarily true.400. 5. costs Rs 2. is the paradigm is changing and customer is no longer price sensitive? Indian customer was never price sensitive. if the seller provides frills free of cost he is happy with that. They are ready to pay premium for the product if the product is offering some extra utility for the premium. With there promotion.If one go to villages they will see that villagers are using Toothpaste. The TV set Sampoorna was just one part of LG's strategy. for example. Cinthol etc. Thus to promote there brand they are exploiting Indian social and cultural values. 4. Priced at Rs 14. especially those that hawk consumer durable.000 more than equivalent products from firms like BPL or Philips. Cultural values play major role in deciding what to buy. As well as Indian are emotional and sensitive. This whole perception has changed because MNC's as well as Indian companies have realized the value of rural marketing. Breeze. but they want value for money. most companies.MNC’s have recognized that in India Social and cultural values have a very strong hold on the people.An Indian customer wants value for money. Tamil and Bengali. even when they can use Neem or Babool sticks or Gudakhu. BY PROVIDING WHAT CUSTOMER WANT: . 6. As MNC car manufacturers are positioning themselves on family car basis as in India family concept is very strong. Historically. The logic: rural users unfamiliar with English would still be able to use the TV without feeling intimidated. BY UNDERSTANDING CULTURAL AND SOCIAL VALUES: . have always believed that cheap products do well in the villages. This is a major departure from the past.

The word is a part of the Bengali. BY PROMOTING PRODUCTS WITH INDIAN MODELS AND ACTORS: . all in towns with a population of around 10. BY ASSOCIATING THEMSELVES WITH INDIA: .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. seven models of Cellular Phones of high technology but none took off. which has captured the market. In the past one year. Nokia has designed a new cellular phone 5110. 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.000. 10. actors for advertisements as this helps them to show themselves as an Indian company. As Ford Motor Company has announced that Ikon its new car is designed exclusively for India. M-TV during Independence Day and Republic daytime make their logo with Indian tri-color. Electrolux is working on a made-for India fridge designed to serve basic purposes: chill drinking water. by explicitly saying that they are Indian. Hindi. Marathi and Tamil tongue. 8. roughly 53 . On the other hand. BY GIVING INDIAN WORDS FOR BRANDS: - These MNC’s are giving India words for brands. he /she becomes loyal to it.Glocalization high technology that can fulfill their need. BY DEVELOPING INDIA SPECIFIC PRODUCTS: - Many MNC’s are developing India specific products.Companies are promoting Indian sports teams so that they can associate themselves with India. As "Motorola" has launched. By the end of 1999. 11. "Nokia" has launched a simple product. Whirlpool has also launched a campaign during world cup. they influence Indian mindset. 9. during world cup they have launched a campaign "Jeeta hai jitaga apna Hindustan……India India India". Similarly.MNC’s are associating themselves with India by talking about India. Keeping into consideration Indian’s requirement develops these products. if he/she can visualize himself with the product. all the best". That is why companies like Daewoo based their advertisements on a normal Indian family. BY TALKING ABOUT A NORMAL INDIAN: . 7. ITC is promoting Indian cricket team for years. LG has sold one lakh 20inch Sampoorna TVs. BY PROMOTING INDIAN SPORTS TEAM: . With this. LG has launched a campaign "LG ki Dua. . Like LG has used India brand name "Sampoorna" for its newly launched TV. keep cooked food fresh. and to withstand long power cuts. with the India tri-colour and a ringing tone of "Sare Jahan se achcha".MNC’s are picking up Indian models. 12.

99. 13. As well as trust of people. 14. The positioning as for as segment is concerned is such that a large section of Indian population can buy it. MNC’s have found that it is much easier for them to operate in India if they acquire an Established Indian Brand. Daewoo Motors has re-segmented themselves on the basis of total value with price being one of the variables. That is what Revlon has done. Similarly Coke has acquired Thums up. That's Rs 114 crore worth of TV sets sold in the villages in a year. But the positioning of the MNC’s product in India is Glocal. Gold Spot. but later on they realized that to survive in the market and to compete with their competitor they have to rejuvenate these brands. Electrolux has acquired two Indian brands Kelvinator and Allwyn this has gave them the wellestablished distribution channel. The myth of enormous size of Indian middle class is subsided. Sony’s price positioning in India is close to Indian companies. BY ACQUIRING INDIAN BRANDS: . Company’s products are designed in keeping the customer’s value based choice in consideration.Global positioning of the MNC’s. BY INDIA SPECIFIC POSITIONING: .As Indian brands are operating in India for a long time and they enjoy a good reputation in India. they priced Lipstick at Rs. Quality Low 54 . luxurious product. as people believe these brands. Global positioning of the MNC’s is of a high quality. Companies target segment is high-end customer. Citra and Limca so that they can kill these brands. Positioning of the MNC’s product in Western markets: 1.Glocalization 12% of LG's Rs 950 crore turnover is expected to come from Sampoorna sales.

Similarly. Therefore. This pen is signed by Mr. Adidas. a JV of Gillette and Luxor has launched 500 "Gajgamini" range of Parker Sonnet Hussain special edition fountain pens. they were wrong. they thought that a similar system can be grown in India. BY ASSOCIATING THEMSELVES WITH INDIAN CELEBRITIES: - MNC’s have realized that in India celebrities enjoyed a great popularity so they now associate themselves with Indian celebrities. they relied on well co-ordinated distribution channel. Economy 15. GLOCAL MARKETING STRATEGIES FOR A FEW MNC’s IN INDIA: 55 . However. 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. MNC shoe giants. They have to reach the "local Paan wala. Luxurious Price 3. Economy Positioning of MNC’s product in Indian market: 1. who is promoted by Reebok. Local Baniya" only they can succeed. Price Luxurious 3. soon they realized that to succeed in India they have to reach the nook and the corner of the country. Volvo realized that to sell there 35 ton trailer trucks they have an uphill task of selling concept. 5000. Nike started with exclusive stores but soon they realized that they do not enjoy much Brand Equity in India. priced at Rs. Quality Low 2. Reebok. The distribution channels in these countries are Big scale Super markets. so that they can associate their name with players like him and get popularity. BY ADOPTING LOCALISED WAY OF DISTRIBUTING - MNC’s are preoccupied with the distribution channel they have in Western countries. Makbul Fida Hussain a renowned painter who has created "Gajgamini" range of paintings.Glocalization 2. Recently Luxor Writing Instruments Ltd. 16. Companies are promoting players like Bhaichung Bhutia.

900 currently company has a Walkman priced at Rs. Audio segment is 30% of Sony India’s total business of Rs. India-specific designs for end products and components. Compaq’s redesigned marketing strategy:  For high value Business:1.July. 2. Sony’s reoriented marketing Strategy: • • • New models to be launched at the same time as Globally i.e. This segment includes PC’s.December. Notebooks and low-end servers. technology and pricing. • • CONCLUSION: Large emerging markets have their own dynamics. Forging alliance with the Indian software developers: . Compaq will manufacture commercial PC’s in the Indian market to get aggressive on the pricing strategy giving customer more choice on product. Recently Compaq and Sony has launched there Marketing Strategies they reflect that the companies are trying hard to turn themselves in to Glocal company.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. 1300. June. Call centers in major markets: . 2. DVD to be launched during September.Glocalization MNC’s are designing India specific Marketing Strategies. 634 Crore. Manufacture commercial PC’s in the Indian market. Introduction of lower end models like Walkman at Rs.  For the high-volume segment: - 1.Company will install call centers within the country to reduce the time to market the products launched in Singapore. A uniform global approach may be inappropriate for succeeding in these 56 . These markets have a very different a very different need set.

Large markets merit local responsiveness. Thus Glocalisation becomes very important. as well as to provide the proper marketing strategy to compete in the local market. These Glocalisation should take in to consideration all constraints as if to safeguard transnational worldwide positioning. Welcome to the world of McDonalds 57 .Glocalization markets.

Service. Quality. A warm and friendly family restaurant where everybody has a great time-especially children…. Jo Jeeta Sabka Vishwas. McDonald’s Rahe Hamesha Unke Paas… Ray Kroc Ne Kiya Unka Sapna Sakar… India Ne Jise Kiya Swikar.e. Where one can rest assured that all products are cooked in 100% pure vegetable oil.. Kabhi Na Jaana Ise Bhool Bhool……. Ek He Hai Bachcho Ki Aas.. however no beef or pork is being served.McDonald’s family customer. Cleanliness and Value to their customer are there valued assets...Glocalization McDonald’s Main Hain Kuch khaas. away from a nonvegetarian product where QSC&V i. Esliye Duniya Hai Inke Mejwan… Khane Ko Mile Yahan Sacha Ahesas… Koi Na Bhool Paye Jiska Swad. Burger Hai Iski Shaan. McDonald’s Hai Ekdam Cool Cool. Wherever vegetarian products are cooked by separate staff using separate equipments. McDonald’s a good Thought. Entry Strategy of McDonalds 58 . fish and chicken.vegetarian. Where we can go and enjoy a wide range of products….

The market information gathered was fully customer oriented. Obviously before starting McDonalds. here the McDonalds have to first find themselves the strength and the limitations. they have to conduct a thorough research it could be by adopting or hiring research agency. which has brought new taste to our tongue which is rich and varied. a complete and detailed market report was conducted in order to identify whether this foreign concept was accepted by Indians. and so on. But. For this the McDonalds started analyzing various factors such as market performance. product information. Vikram Bakshi.e. their outlook towards the western culture and its acceptability. Market information of McDonalds being the foreign outlet felt the need of testing Indian market. who took the initiative of starting an outlook like McDonalds in India. Their research was based on this very aspect. airports. hospitals. McDonalds entrance to India through sound research: Basically. theatres. While applying practically McDonalds being foreign outlet has to establish it self in India i.Glocalization McDonald's India opened its doors to India in October 1996. These details were only possible with the proper market research. etc. Thanks to Mr. This was important because according to the McDonalds people this very factor helped in identifies the status. The immediate thing done by them was the ‘Counting the number of people wearing shoes’. Amit Jatia and Mr. McDonalds needed various information for conducting the sound research. When McDonalds entered India it had to undertake the studies in different spheres such as market information. by MUDRA AD AGENCY. 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. McDonalds was helped by the advertising agency i.e. before entering the India McDonalds had to ensure that the market research was organized in a systematic and complete manner. McDonalds started in the year 1995 in Bandra in October. import agents. The concept worked out and McDonalds started his job. promotion information. market shares. standard of living and how sophisticated the people of India are?. before establishing itself in the cultured and traditional bounded country like India. The factors that McDonalds had to cover were as follows: 59 .

The other promotional strategy were arranging of the Veg surprises and the happy meals for the kids. Look out for the Veg symbol 60 . 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. From time to time the McDonalds have taken up various promotional strategy were the kids are attracted. Amit Jatia and Vikram Bakshi are like-minded visionaries who share McDonald's complete commitment to Quality.Wada pav. along with their Indian management team. For instance in Maharashtra the people are more fond of the stuff like . when one goes to the McDonalds the climate there created is such that the children do attract towards it. Jaipur and Mathura. Service. 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. owns and manages McDonald's restaurants in Mumbai and Pune. McDonald’s India has developed a special menu with vegetarian selections to suit Indian tastes and preferences. Pav Bhaji and these are all made of potato. McDonlad's restaurants are owned and managed by Vikram Bakshi's Connaught Plaza Restaurants Pvt. Ltd. Not only the kids are the target but McDonalds has always been in the effort to cover the most of the Indian segment. in McDonald's restaurants in Indonesia and the U. they trained extensively.S. McDonald’s first target were the children. Burger is a junk food therefore the researcher has to emphasis to the taste that is more preferred by the Indian people. Just a small step to ensure that all their Indian customers experience the delight that McDonald's is internationally famous for! 2. The finding suggested that the Indians are more fond of the dishes made out of potatoes. Cleanliness and Value (QSC&V). In Delhi. Having signed their joint-venture agreements with McDonald's in April 1955. Samosa. 3. Ltd.Glocalization 1. It is very difficult to capture the foreign market and establish itself in the country which inherits different culture. Ultimately the McDonalds came up with the potato Veg patties and really the concept worked out. McDonalds's Indian ventures are owned and managed by Indians. 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. Amit Jatia with Hardcastle Restaurants Pvt. MARKET INFORMATION: McDonald's is a synergy of globally-acclaimed skills with Indian expertise. 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.A.

McDonald’s has fulfilled its social obligations in every possible manner and bringing smiles to many faces. 6. social. 61 . cultural and legal environmental so marketing strategies can be decided in the light of the special features. It denotes that the item is 100% veg – does not even contain egg! 4. These patties are prepared in Bhiwandi which is the distribution centre of the McDonalds in Mumbai. and so on. ENVIRONMENT INFORMATION: Of interest this means that they earn the economic.Glocalization in their communication and their product wraps. 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. it has to frame its pricing policy with due care so that it is easily accepted by the Indian. 5. political. 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. McDonald’s is known for its exemplary contribution to the local economy and environment. inventory. Along with it the proper warehousing. McDonalds can provide a full healthy meal and nourish the one who go to McDonalds. 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. They maintain the high quality of food which has helped them to gain immense popularity. 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. DISTRIBUTION INFORMATION: Distribution or the place information also plays a vital role for any company for its proper establishment in the foreign country. Thus McDonalds pricing strategy is such that it provides the value of money concept to its customer. Role in the cut throat competition in the harsh economic climate the world. McDonalds is called the ‘turnover restaurant. McDonald’s have entered the Indian Market through ‘penetration strategy’. PRICE INFORMATION: Pricing any product is surely a crucial problem before a company. VHP. The McDonalds prices are quite reasonable. Ever since its first restaurant opened in India. When McDonalds stepped in India the possible threats posed by them were the various political parties such as Shiv Sena. Thus for establishing oneself in the foreign market the environment should be very protective and healthy so that it working is not affected.

Amit Jatia. Yet. McDonald's commitment to its Indian customers is also shown in its development of special sauces that use local spices. soft serves and the world-famous French fries. the joint venture partner for McDonald's India (western region). but the mayonnaise used in its vegetarian burgers is also egg-less. using dedicated equipment and utensils. McDonalds have carefully identified local Indian businesses that take pride in satisfying customers by presenting them with the highest quality product. He firmly believed in mutual benefits arising from a partnership between McDonald's and the local businesses. says. fish and vegetarian products that include milkshakes.Glocalization MCDONALD’S IN INDIA Consistency and uniformity – the trademark of McDonald’s anywhere in the world – beit in areas like the quality of the food or the attention to service. McDonald's has also added Chatpatey (spicy) Potato Wedge and the Wrap to their menu in 2002. This assurance is rooted in the philosophy of our company's founder. Not only that. The French fries are prepared using spices and fried in 100% vegetable oil (Palmolein oil). McDonald's India has developed a special menu with vegetarian selections to suit 62 . With guidance from its local partners. McDonald's India today purchases more than 96% majority of its products and supplies from Indian suppliers. thus ensuring that McDonald's commitment to growth was mirrored by that of their partners. McDonald's has also changed its operations to address the special requirements of a vegetarian menu. McDonald's has opened restaurants in about 120 distinctly different countries and cultures. McDonald’s opened with a beef-less and pork-less menu and special product formulations to accommodate Indian culture and palate. Ray Kroc. This dedication to local cultures is not new for McDonald's. Also In India McDonald's uses only vegetable oil as a medium for cooking. McDonald's is able to adapt – where necessary . “McDonald's has spent considerable amount of time to understand Indian culture. In keeping with this belief. Out of respect for many of our customers' beliefs. Vegetable products are prepared separately. we are not serving any beef and pork items. McDonald's was committed to sourcing its needs from local suppliers and farmers. In India.” The menu consists of chicken. For the past 49 years. what is acceptable within local customs and values. McDonald's local owners understand what their customers want and perhaps more importantly.its menu and restaurant operations to complement existing eating-out options. a McDonald’s in China would be distinct from its counterpart in Germany or Canada or India.

Among these are McVeggie burger. Fries 2. McShakes 63 . Veg. Taking in to account the Indian palate. They have also created egg-less sandwich sauces for their vegetarian customers. Filet-O-Fish 4. they have prepared the choicest of products using spices favoured by us. Employees in the vegetarian and non-vegetarian sections of the restaurants can be identified by the different colored aprons that they wear. McAloo Tikki 3. PRODUCTS OFFERED BY MCDONALDS Veg: 1. Pizza McPuff Non-Veg: 1. Cold Coffee 2. McAloo Tikki burger. This separation of vegetarian and non-vegetarian food products is maintained throughout the various stages of procurement from the suppliers. In addition. So the next time when we think of delicious vegetarian food. Chicken Maharaja Mac 2. Vegetarian products are prepared separately. Potato Wedges Beverages: 1. Chicken McGrill Add-Ons: 1. they re-formulated some of their products using spices favored by Indians. McDonald’s have specially developed a range of 100% pure vegetarian food to offer. even the mayonnaise used in the items is egg less. Only the freshest chicken. Chicken Mexican Wrap 5. using dedicated equipment and utensils. fish and vegetable products find their way into our Indian restaurants. McVeggie 2. Soft Drinks (Coca-Cola. McDonald’s does not offer any beef or pork items in India. cooking and serving. Ice Tea 3.Glocalization Indian tastes and preferences. Even their soft serves and McShakes are egg-less. Fanta and Sprite) 4. Pizza McPuff and Chicken McGrill. offering a larger variety to their vegetarian consumers. rush straight. In fact. McChicken 3. to our nearest McDonald’s Family Restaurant.

Amit Jatia says such a strategy marks McDonald's operations everywhere. This is the brand recognition McDonalds have achieved while operating in India.Glocalization 5. Manpasand meal (McAloo tikki burger / salad sandwich for veggies and McChicken kabab with small fries for non-veggies). Café Mocha.at the head office. providing faster food service and entertainment to children. carry out bags are unbleached and made from 60-80% recycled material. Floats Mumbai Operations Chief. Depending on the feedback. All McDonald’s food boxes and cartons are made from 72% recycled material. while napkins are 10% recycled paper. It goes through various trials -. we introduce the item in one outlet. It has really worked out in metropolitan cities." MCDONALDS AS A BRAND The company is keen on Indianising. and after gauging customer response. launch it in other outlets as well. especially in Mumbai and Delhi. As a brand. The brand also signifies happiness and smiles all round. Hot Choclate) Frozen Desserts: 1. McSwirl 2. PACKAGING IN MCDONALDS McDonalds use a minimum of 50% recycled content in corrugated cardboard boxes and ask that our suppliers do the same. Hot Serves (Cappucino. Cardamom Tea. Its operations are gaining growth and newer and newer outlets have been proposed to be set up. people think about McDonalds. "The key to our worldwide functioning is to McDonalise the local people. McDonalds have been able to tap its target market and make people aware of its brand by advertising. Delivery vehicles which can carry fresh. enabling them to reduce diesel costs and fuel emissions. Since 1988. other staff. we put on our thinking caps and brief the product development team." he says. You talk about burgers in India. Soft Serves 3. They in turn develop the product and give it to us for trial. 64 . frozen and chilled food have resulted in fewer delivers. Amit Jatia says "We have to keep our ears to the ground to know what the customer desires. If there is this indication. Plain Tea. So Maharajah Mac (non-vegetarian mutton burger). the company has succeeded as a provider of fast food retail outlet. the crew.

however now the toy collection changes depending upon new animation movie releases). Therefore. ADVERTISING OF MCDONALDS McDonald’s promotes Ronald McDonald in their advertisements in India because the target market for McDonalds is primarily kids and children. All refrigeration and air conditioning systems are carefully maintained by approved contractors following industry guidelines for the use and disposal of CFCs. Recently. The Pokemon cartoon serial is very much popular among the children in India and with the increasing superhero movie trend (eg. the McDonalds is also called a Family Restaurant. Ronald McDonald stands for a person who is a magician that spreads smiles all round and acts a symbol for fun and entertainment. They don’t use any kind of celebrities in their advertisements (only duplicates highlighting they’re prices). McDonalds for the kid is a place to enjoy and rejoice and get gifts. toys are also given free along with the meal (Pokemon toys were given earlier.Bayblade etc) toys of the main movie characters is let out.Batman. This ad also focuses on the pleasure of eating food at McDonalds and you don’t need a reason to come to McDonalds. The concept of family is very much prevalent in India and hence McDonalds is emphasizing on this concept. The McDonald’s advertisement also emphasis on the great experience to have fast-food with a family. they have their advertisements coming up in the televisions (I’m Lovin’ It). You will see the ‘CFC-free’ stamp on all their foam packaging.Glocalization they have only used CFC-free materials in their packaging. 65 . In their menu of Happy Meal. These toys also act as an agent to promote McDonalds.Spiderman.

McDonald’s rich history began with their founder. 66 . Chicken McNuggets and Egg McMuffin.It franchises and operates more than 32.World Famous French Fries. Quarter Pounder. Ray Kroc. Big Mac.000 restaurants in over 119 countries serving more than 47 million customers each day.Glocalization McDonalds (RECOMMENDATION FOR MCDONALDS) (THE FUTURE MARKETING STRATEGY) McDonald's is the world's leading food service retailer. 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. 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 .

Mc Salad sandwich A New Innovation McDonald’s can come up with a unique concept of serving Udipi foods in their outlets. Mc DOSA Mc PLAIN DOSA Mc IDLI Mc VADA 67 . which they were selling in the other markets. Some of these were the Burger and the French fries. To suit the Indian tastes.Glocalization MCDONALD’S Adaptive Marketing Strategy in India McDonald’s launched the same products in India. McDonald’s came up with the following: • • • Mc Puff Aloo Tikki.

First of all this is a totally new concept for the McDonald’s. mudga-pudi etc. Here two aspects need to be considered: • The cost factor if McDonald’s goes for mass reach. An extensive research needs to be carried out in terms of the products: • • • The know-how of the preparation of the dishes. Here McDonald’s already has a set of customers that are coming to their outlets. This is because McDonald’s is present mostly in the cities and Mumbai resembles all type of customer base forming part of the cities in India. sambar. identification of the target market would be the primary issue. And whether it succeeds or fails. The know-how for dishes such as chutney. in the banana leaflets or plates and the reasons for the same.Glocalization MARKET RESEARCH To ensure ease. 68 . • What are the prices they are charging for various dishes? Here different restaurant owners would be charging different prices. 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. The best possible ingredients that should be used and their perishability. At the initial stage. The reason for the same also needs to be identified. • Also the cities in South India need to be considered because they are masters in preparing these items and McDonald’s is totally new to the race. the Mumbai customer profile is taken into consideration.

those who prefer to eat at home or at other location. In general. recognizes that it is costly to have food at McDonald’s. high-quality food and service offerings. These innovative initiatives will include launching these restaurants under new brands that wouldn’t be saddled with McDonald’s fast-food image. this group is characterized by a wealthy one income family where the male works and the female does not. • UPPER-CLASS: This group has intertwined McDonald’s values throughout their lives and is willing to spend whatever it takes to throw a high-end delight and fill. • MIDDLE-CLASS : This group of people does not have huge amounts of disposable income. families or group of people or takeaways. “McDonald’s can position itself as an innovative. POSITIONING STRATEGY The positioning would be dependent on those of competitors and the uniqueness in the service that McDonald’s would provide. but will try to minimize them. and is willing to incur the expenses.Glocalization THE TARGET MARKET For the city of Mumbai with a population of 1crore. The female of the household typically enjoys the planning. the target group would comprise of people who eat alone. Typically.” 69 . McDonald’s can have two distinct target customers.

• 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. Here prices that are not too high can be charged because of the mindset of the customer regarding these food items. etc. can be put up at the initial 70 . Hence separate outlets would be opened. develop an advertising strategy. • McDonald’s is approaching the market as if there was significant competition between the different service providers. Competitors’ prices should also be considered. • Since McDonald’s has now been for a considerable time in the country they might be aware of the market. local customers will come to appreciate that their needs are given primary importance and form a long-lasting relationship with them. • The advertising should be in the form of hoardings. But a differentiation would be created for slightly higher prices. and other forms of advertising.Glocalization LEVERAGING THE COMPETITIVE EDGE: • Here McDonald’s can stress on the fact that the outlet for a Mumbaikar would be 15-20 minute travel distance from the house or office. television commercials. ADVERTISING AND PROMOTION • McDonald’s advertising department’s job would be to propose a budget. PRICING STRATEGY Pricing is one of the crucial aspects in any business activity. Stalls at various locations like places of public interests. • In developing the program. approve ads and campaigns. The price should be fixed or should be arrived in such a manner that it is acceptable to the buyer’s pocket. for the service and the ambience provided. exhibitions. By making customer satisfaction a priority over time. than the normal. Here the identification of the target market would play an important role. the Marketing Managers of McDonald’s need to start by identifying the target market and buyer motives. and radio.

McIdli se fill your tummy”. This would also help in determining the preferences of the customer in regards of taste and prices. “Ab Idli Dosa ke Saath Ban Jaye Baat” “McDonalds mein really hain kuch baat” 71 . eat something yummy……. McDonald’s can push out more classic hoardings utilizing such lines as: “Tute na McDonalds se Bharosa……… Try the naya McDosa” “Next time your hungry. • The Marketing Managers can make five major decisions in developing an advertising program known as the 5 M’s: 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.Glocalization phase with introductory prices (lesser than the actual).

For example. 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. and the McLean Deluxe sandwich were all examples of how the company tried to appeal to a wider range of consumers. its breakfast menu. Chicken McNuggets. And why not.Glocalization A DIFFERENTIATION Everyone in this world was to create his own identity. because that would be the unique way you would be recognized by the people. Here differentiation can be created by starting free home delivery with a condition of a certain bill amount. 72 . McDonald’s would face some difficult challenges. salads. even while striving to achieve consistency in the operation of its many outlets. CONCLUSION The secret of McDonald’s success is its willingness to innovate. The company could also look into expanding more aggressively abroad where the prospects for significant growth are greater.

This philosophy provides serious advantages that can improve a company’s competitive edge. and blind a company to its customer’s needs. explains how people no longer want to have what their neighbor has. but an essential strategy for survival. sometimes. Hence. Standardization is a philosophy that views the world as one market. The issue of whether to adapt (glocalize) or to standardize a company’s operations is one of the most important issues in international marketing. they want to have what "they" want. Glocalization is the working arm of standardization. We have heard this mantra for some time. some places.and when the customer demands it. Successful companies state that international marketing works only with some brands. It leads manufacturing companies to move into service-based offerings. 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 country’s customers. it's all about customer focus. the risks incurred if the standardization process in not done correctly can outweigh the benefits.Glocalization CONCLUSION The customer really has become King. Fundamentally. and service-based companies to redouble their attempts to understand and deliver personalized value to customers . rather than when they are ready to deliver. 73 . and they have the expectation that the dealer or company will provide that. but we seem to have now reached a point where it is no longer merely a means to obtain competitive advantage. Sir Nick Scheele. Although standardization can substantially increase a company’s productivity and profits. It realizes that some degree of adaptation is necessary in the real world. alienate employees. The customer has not been slow to warm to the changing realities of the marketplace. President and COO of Ford Worldwide. Marketing a single product one way everywhere can scare off customers.

The concept of eating burgers and French fries was unknown in Indian market. why the word “Aloo Tikki” is used? What are the other forms of media used? Q. Hiring Indian professionals 74 .3.? Q.8.9. What is that unique thing that McDonald’s do in India which is not practiced at any other abroad branches keeping the Indian culture in mind? Q. What promoted or influenced McDonalds to introduce this concept? Q.4.7.2. Does McDonalds do any kind of rural marketing? Q.Glocalization ANNEXURE QUESTIONNAIRE FOR MCDONALDS Q. etc. What are the current operations in India in terms of branches.5. Why did they entered India and what was the entry strategy? Q. What is the pricing strategy of McDonalds in India? And what factors are kept in mind while deciding the price? Q. How has McDonalds as a brand succeeded in Indian market? And what does your brand signify? Q. marketing strategies. which factors are kept in mind? How do you go about your market research for the new product development? Q.10.6. History of McDonalds in India. How have you adapted yourself to the Indian market in terms of: 1.11. 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. What are the products of McDonalds and while they are launched.1. 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.

What is the future marketing strategy of McDonalds? REFERENCES 75 .12.14. What is the target market for McDonalds in India? Q. How have McDonalds positioned itself in Indian market? Q. 4. 6.Glocalization 2. 5. 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. 3.13.

com 4.mcdonalds.suite101.in 3.co.mcdonaldsindia.Doole Isobel and Lowe Robin (Analysis. Consumer Behaviour (Chapter 14). Craig.google. 4. 2. www.org 76 . www.investopedia.com 5. A Marketing Management (11th Edition).en.com 10. development and implementation) 5.com 8. www. C International Marketing Strategy (2nd Edition). P.Glocalization BIBLIOGRAPHY BOOKS: 1. www. Gupta. www. Samuel.commondreams. 3.com 7. Paul.org 2.5. www.wikipedia.Kotler.Douglas.brandchannel. Susan.com 9. Global Marketing Management (6th Edition).books. S.6-Part-I) – Herbig.Dr.translationdirectory. Philip Global Marketing Strategy.L and Pal Sumitra (An Indian perspective-Texts and Cases) WEBSITES: 1.Keegan. www. Warren. Handbook of cross-cultural marketing (Chapter 2. J 6.com 6. www.indiainfoline. www. www.

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