GLOBAL MARKETING

• THIS PAPER BRINGS OUT A NEW METHOD OF LINKING GLOBAL MARKET SEGMENTATION TO VARIANTS IN PRODUCT DEVELOPMENT. GLOBAL OFFERING ACROSS SEGMENTS OF VARIANTS IS PROPOSED TO BE ENABLED BY CHOICE OF A SUITABLE PRODUCT PLATFORM ARCHITECTURE.IT LOOKS AT MARKETING OF PRODUCTS FROM THE BASIS OF GLOBAL DEMAND POTENTIAL.THE DRIVING FORCES AND GLOBAL DEMAND BASED GROWTH DRIVERS AND GEODEMOGRAPHICS PROPOSED.

OUTLINE
• • • • • • • • • • • • • WORLD DEMAND FOR THE PRODUCT OR SERVICE. DRIVERS- GROWTH AREAS MARKETING STRATEGY POTENTIAL COMPETITORS. COMPETITIVE POSITIONING. TECHNOLOGICAL ASSESMENT TECHNOLOGY EXTENSION AND STRECTHING OF CORE COMPETANCIES GLOBAL DELIVERY MODEL. GLOBAL SOURCING. VALUE CHAIN ANALYSIS FOR VALUE DISCONTINUITY. THINK GLOBAL ACT LOCAL. MAKE GLOBALLY SELL LOCALLY. SELL LOCALLY- ADAPTATION

DRIVERS OF DEMAND
• • • • • • • • GLOBALIZATION OUTSOURCING CROSS BORDER ACQUISITIONS. SHIFT IN MANUFACTURING TO CHINA AND INDIA INCREASING COMPETITION. QUALITY CONSCIOUSNESS INFORMATION REVOLUTION EROSION OF TRADITIONAL COMPETITIVE ADVANTAGE • DEMISE OF MASS MARKETS. • HIGH CONSUMER AWARENESS. • RAPID TECHNOLOGICAL CHANGE.

GLOBAL INTEGRATION
Driving Forces
Technology Culture

Restraining Forces
Culture Market Differences Costs National Controls Nationalism War Management Myopia Organization History Domestic Focus

Market Needs
Cost Free Markets

Economic Integration
Peace Management Vision

Strategic Intent
Global Strategy and Action

“Half the people in the world have yet to take their first picture. The opportunity is huge, and it’s nothing fancy. We just have to sell yellow boxes of film.”
- George M.C. Fisher CEO, Eastman Kodak Company

Examples of Global Marketing
Product Design Brand Name Product Positioning Packaging Advertising Strategy Sales Promotion Distribution Customer Service

Canon photocopier/McDonald’s/Toyota
Marlboro/Coke/Sony/BMW/ Colgate toothpaste Gillette razors Coca-Cola/Benetton IBM Benetton/Ikea American Express

Why Global Marketing?
• Exploiting Firm-Specific Capabilities
– Technological innovations – Strong Trade Names

• Lowering Cost Structure
– Outsourcing – Hub and spokes model

Why Global Marketing?
• Diversification and competitiveness
– Product/market portfolio – Cross-subsidization

• Country market attractiveness
– Income – Consumer preference

• Technology and market globalization

Why Global Marketing
• Saturation of domestic markets: Domestic market saturation in the industrialized countries and growing marketing opportunities overseas. • Global competition: Competition around the world and proliferation of the Internet. • Need for global cooperation: Global competition brings global cooperation.

Global Marketing Environment
Global
Regional Local Marketing Mix

Environment

Global Trade Importance
• World trade has grown from $200 billion to more than $7 trillion in the past three decades. • The Iron Curtain is gone and capitalism is the new economic order. • Firms invest on a global scale. • Increasingly more difficult to define “where” products come from. • New trading blocs are emerging.

Global Marketing
• International trade is booming as global competition is intensifying. • The world is shrinking rapidly with the advent of faster communication, transportation, and financial flows. • Globalization Threat and Opportunity • Global Competition among Global Companies for Global Consumers. • Emergence of a Networked Global Marketspace.

GLOBAL DEMAND

Domestic and Global Trade Growth
Percentage of Growth
12% 10% 8% 6% 4% 2% 0%

19

19

19

19

19

19

19

19

19

19

19

19

19

Trade Growth

Domestic Growth

Source: International Financial Statistics Yearbook 2000, International Monetary Fund, Washington D. C.

20

Year

87

88

89

90

91

92

93

94

95

96

97

98

99

00

The Changing Face of Exporting
400% 350% 300% 250% 200% 150% 100% 50% 0% Australia Canada Germany Japan USA
Source: The World Bank, World Development Report, 1999.

Growth (1983-1998)

Merchandise Exports

Commercial Services Exports

20th century

Research

System Eng’g

SW Development HW Development

Design Verification Testing Test Set Development

MFG

Prototype

21st century, so far

Research

System Eng’g

SW Development HW Development

Design Verification Testing Test Set Development MFG

Prototype

The World is Flat
• Today’s Businesses are truly global • Distance doesn’t matter • This change is very recent. • This change has huge implications to how we do business.

GLOBAL DEMAND ,MANUFACTURING AND DELIVERY

Europe

Asia
L. America Africa S. America

(Year 2004)

EMERGING THEMES THAT DOMINATE OUR WORLD TODAY Knowledge based business
Networks Generation X New Technology Consumer Demands

Rate of Change

Competitive Environment

A CREATIVE ? RESPONSE IS REQUIRED
Innovation

Creativity
Flexibility More Focus on Community Generation X Values Globalization New Work Values More Competition for Talent

CHANGE IN ECONOMIC LANDSCAPE

Opportunities for Selling

THE RISE OF BRIC

GLOBAL DEMAND IN DIFFERENT SECTORS
Semiconductors: Passive Components: Enclosures: Electronic Wire/Cable: Printed Circuit Boards: Mining/Refining Material Processing : $205 Billion $60 Billion $20 Billion $9 Billion $11 Billion
$40 Billion

Computer/EDP Communications Automotive Consumer A/V

$360 Billion $270 Billion $140 Billion $120 Billion

Industrial
Defense/Aerospace Instruments

$100 Billion
$90 Billion $70 Billion

GROWTH DRIVERS REGIONWISE

High Tech Products Japan, USA,, India ,Germany,Taiwan France, Singapore, Korea,
$1,150 Billion Components Japan, USA, India,China, Germany,Taiwan France, Singapore, Korea, $305 Billion
Mining/Oil Refining Middle East, Africa, Russia, India,China Australia, Canada,Brazil

$40 Billion

DEMOGRAPHICS

MANUFACTURING AND SERVICE PROVIDERS TO SHIFT TO COUNTRIES WITH SURPLUS WORKING POPULATION

THE STRATEGIC PLANNING PROCESS Assessment and adjustment of core strategy (market / competitive analysis, internal analysis) Formulation of global strategy

(choice of target countries, segments and competitive strategy)

Development of global marketing program

Implementation (organization structure, control)

Global Marketing
Looking at the Global Marketing Environment
Understanding Market Segmentation

Deciding Which Markets to Enter Deciding How to Enter the Market Deciding on the Global Marketing Program Deciding on the Global Marketing Organization

STRECTHING OF CORE COMPETANCIES TECHNOLOGY EXTENSION BRAND EXTENSION

CORE PRODUCT IDEA AS EMBODIMENT OF CORE COMPETANCE
• A COMPANIES EMBODIES ITS CORE COMPETANCE AS CORE PRODUCT IDEA . A COMPANY FOCUSSES ON CORE COMPETANCE BUT IT CANNOT REMAIN LIMITED TO ITS CORE COMPETANCE ONLY. STRETCH CORE COMPETANCE DEFINES THE ENVELOPE THAT THE COMPANY CAN FOLLOW TO DEVELOP PRODUCT/SERVICE PLATFORM ARCHITECTURE. A MULTI PRODUCT ARCHITECTURE ENSURES LEVERAGING OF THE STRETCH CORE COMPETANCIES

PRODUCT DEVELOPMENT WATERFALL MODEL

DESIGN OF NEW PRODUCT /SERVICE VARIANTS BY USING MORPHOLOGICAL SYNTHESIS

SHAPE OF GROUND

SIZE OF BALL DIAMETER IN INCHES

SHAPE OF BAT/STICK

NUMBER OF PLAYERS

TARGET

MEDIA

GROUND

.5 1 3.5 5 12 15

2 3 5 7 11 15

Football goal post Cricket wicket Golf Course hole Tennis Net Basket Ball Board
GOLF HOLE

NEWSPA PER TELEVIS ION INTERN ET

TABLE WATER ICE

MAGAZI NES RETAIL OUTLET S IN FLIGHT

PITCH INDOORS

AIR

Using Multiple Segmentation Bases: Geodemographics

GLOBAL MARKET SEGMENTATION
SUBSISTENCE ECONOMIES RAW MATERIAL EXPORTING ECONOMIES

INDUSTRIALIZING ECONOMIES
INDUSTRIAL ECONOMIES
POST INDUSTRIAL SERVICE ECONOMIES

IDENTIFICATION OF MARKET SEGMENTS USING MORPHOLOGICAL SYNTHESIS

CULTURE

ECONOMIC LEVEL
SUBSISTENCE ECONOMIES

END USER
CONSUMER

INCOME
WEALTHY

HUMAN SETTLEMENT S

AGE GROUP
1-10

NEED
SAFETY

REGION

RAW MATERIAL EXPORTING ECONOMIES INDUSTRIALI ZING ECONOMIES INDUSTRIAL ECONOMIES POST INDUSTRIAL SERVICE ECONOMIES DECLINING ECONOMIES

RETAILER

RICH

METRO

10-25

HEALTH

NGO’S

CONSUMING CLASS CLIMBER ASPIRANTS

CITIES

25-45

LIFESTYLE

INDUSTRY SERVICE COMPANY

SEZ TOWNS

45-60 60+

PLEASURE SKILL ENHANCING

GOVERNME NT

DESTITUTE

VILLAGES

75+

ESTEEM ENHANCING

MAPPING SEGMENTS TO PRODUCT DEVELOPMENT
MM
Segmentation Align Biz Plan Dvlp Biz Plan Measure Performance Mkt Assess Opportunity

IPD Marketing Program Conceptual Diagram
MM Project Business Plan

Product Line Level

HW Biz Strategy HW Historical Data Technology Customer Wants & Needs
Market Requirements

Go To MKT
Customer Communications Release of Products

OR
Requirements Management
(Process & Tools)

Handoff to Market Managemen t Process

Roadmap

PMT Project

Marketing Promotion Technical Support
Product Level

Requirement s Project

Products Launch

IPD
Concept Develop Launch Qualify Life Cycle Plan

IPD Process MKTG PDT Project

Charter
Offering Requirements Emerging Product Requirements
Handoff to IPD Process

PCR Project

Other events triggering PCRs

Legend Key Inter-project (Inter-process) Handover Points

MULTIPLE PRODUCTS IN MULTIPLE MARKETS
Future Today

Past

t
Core competence Enabling competencies

“If we distributed pictures only in the United States, we’d lose money. It takes the whole world now to make the economics of movie-making work.”
- William Mechanic President, 20th Century Fox

CHOICE OF PRODUCT PLATFORM ARCHITECTURE
• CHOOSING OF PRODUCT PLATFORM ARCHITECTURE DEPENDING ON MAXIMIZING RETURNS ON VARIANTS ACROSS MARKET SEGMENTS. • MAPPING OF SEGMENTS TO VARIANTS OPTIMIZES THE VALUE PROPOSITIONS.

Product Architecture product platform

• More market segments and variants at lower cost • Increased design re-use through design commonality • Parallel engineering and • manufacturing at reduced risk • Reduced product and product • management complexity • Outsourcing agility and IP protection • Improved serviceability and • simplified upgrading

UNDERSTANDING AND ADJUSTING THE CORE STRATEGY

PRODUCT- MARKET SIMILARITIES - Similar needs or wants to be met - Similar end user customers to be targeted - Similar products or services used to meet needs of specific customers • Analysis is the first step - Market analysis - Competitor analysis - Internal analysis • Formulating global marketing strategy starts with a series of decisions - Country-market choice - Choice of competitive strategy - Segmentation choices

• Country- Market choice - Concentration - Diversification • Factors in country selection

- The stand-alone attractiveness of the market - Global strategic importance of the market - Possible synergies offered by the market
• Choice of competitive strategy alternatives - Cost Leadership - Differentiation - Focus

• Basis for global market segmentation
- Environmental variables (Economics, Geographic, cultural, ….) - Marketing-mix (Product, Price, Promotion, Distribution) variables

OPTIONS FOR CREATING CONTINUOUS VALUE THROUGH VARIANTS
Value Opportunity Initiative Process Capability

Grow market share

New Products

Line Planning, Spec development, Sample management, Component and supplier management
Line planning, Creative design, Specification development, Sample management Change and configuration management

Line planning, spec development, vendor collaboration, workflow
Storyboarding, Line planning, spec development, workflow Workflow and CMII

Lower lifecycle cost

Global product development

Lower Lifecycle cost

Reduce the number of engineering changes

Improve ability to fulfill demand

Rationalize number of suppliers

Component and supplier management

Supplier profile, Vendor portal

Develop and define new markets

Reduce the number of physical prototypes

Sample management

Fit management, Sample management

STRATEGY FOR AN COMPANY SWOT ANALYSIS

VALUE CHAIN ANALYSIS FOR VALUE DISCONTINUITY AND POTENTIAL

VALUE CHAIN DISCONTINUITY AND UNLIOCKING OF VALUE POTENTIAL AN EXAMPLE OF KNOWLEDGE INTERMEDIARIES

Value Chain Transformation
Value distribution is shifting towards the customer end of the businesses. The manufacturer producer focused value chain is meeting serious challenges.

Value

Future value chain distribution

Traditional value chain distribution

DISCOVERING VALUE POTENTIAL
Value Partner
Customer’s Business

SUPLIER COMPETENCE

Customer’s Process

VALUE POTENTIAL

Performance Partner

Service Partner
Customer’s Operations

Customer’s Purchasing

Solutions Provider

Components Supplier
Sourcing Operators Process Business

FOCUS ON CUSTOMER RELATIONS

MAXIMIZING VALUE
• THE COMPLETE SET OF PRODUCTS ,VARIANTS AND SERVICES, BEYOND THE PRODUCT ITSELF, NEEDED BY THE TARGET CUSTOMER IN ORDER TO FULFILL THE COMPELLING REASON TO BUY.

A COMPANY’S ROLE RESPONSIBILITIES WITHIN AN ECOSYSTEM MAY SHIFT ACROSS THE PRODUCT LIFECYCLE
Typical PrODUCT Lifecycle – Highly Engineered Products
Current Responsibilities Additional Future Responsibilities

Concept Influence/ Direction Company

Design

Test

Produce

Maintain

Improve/ Upgrade Company

Retire

Ecosystem Partners

Ecosystem Partners

Implications for the value chain • Longer support program timelines • New capabilities required that are not currently widespread • Increased complexity

Customers are seeking more value which requires a fundamental shift from traditional design-and-build to full solution provider

Extended Value Chain inclusion of Aftermarket Value Chain Opportunities
Contracting for Capability Supplier

Increasing Business Opportunity

Contracting for Availability Supplier Front Line

Contracting for Spares Supplier 2nd Line Front Line

Traditional Supplier/ 4th Line 3rd Line 2nd Line Front Line

Degree of Transformation

Creating value across segments through variants

Strategy

Global Marketing

Product platform architecture

Global delivery

Product Development strategies that enhance business value.

Actions taken to create value through global market segmentation.

Choice of a suitable product platform architecture to match the global demand segmentation.

Global delivery and customer mapping system that must be in place for an initiative to be successful.

Value Opportunities

Marketing Initiatives

Selection

Deployment

COMPETITOR ANALYSIS

LOW-COST AND DIFFERENTIATION
• According to Porter, there are two basic types of competitive advantage a firm can possess low-cost and differentiation both deriving from the industry structure. • These two advantages, combined with the scope of activities a firm selects to achieve them, led Porter to develop three generic strategies: • Cost leadership • Differentiation, • Focus (cost and differentiation in a narrow segment). • Each one is a fundamentally different route to competitive advantage and a firm must be clear in choosing one or the other if it is to achieve sustainability. • It is always necessary for a firm to offer a moving target to its • competitors by investing in order to continually improve its position".

VALUE CHAIN
• The value chain defines the discrete activities a firm performs in designing, producing, marketing and distributing its product. • The value chain enables analysis of competitive advantage: • How each activity is performed combined with its economics determines whether a firm is high or low cost relative to competitors. • How each value activity is performed will also determine its contribution to buyer needs and hence differentiation.

Comparing the value chains
• Comparing the value chains of competitors exposes differences that determine competitive advantage. • Not only the activities themselves, but also how they interact can be determinant. The location of various activities to leverage the strengths of local economy is the key to success in globalized world • These "linkages" are complex but when recognized and well managed, they can create a differentiation advantage. • By selecting the appropriate strategy built on a creative value chain to favor its competitive position within the industry and by creating mobility barriers, a firm can build sustainable competitive advantage.

DISAGREGATION OF VALUE CHAIN
• THE ACTIVITIES A FIRM IN DESIGNING, SOURCING PRODUCING, MARKETING AND DISTRIBUTING AND SERVICING ITS PRODUCT AND SERVICES IS THE VALUE CHAIN. WITH POSSIBILITIES IT IS NECESSARY TO EVALUATE THE COMPETITIVE ADVANTAGE OF VARIOUS CENTRES IN CARRING OUT THE PARTICULAR PART OF THE VALUE CHAIN. THE DISAGGREGATION OF VALUE CHAIN ENABLES THE OUTSOURCING AND OPTIMIZATION OF COST AND SUPPLY CHAIN MANAGEMENT.

VALUE *CHAIN
Project Management
Develop Service & Maintain Market

Fulfill

Global Product Developme nt

Plan

Manufacture Sell Procure

Sourcing Product Intelligence

Configuration Management

VALUE CHAIN RECONFIGURATION FOR GLOBAL DESIGN ,SOURCING ,MANUFACTURING, AND MARKETING

Value Chain Reconfiguration enables analysis of capabilities delivered throughout the ecosystem for realignment opportunities to improve ecosystem performance and to identify new business opportunities for ecosystem participants

GLOBAL DESIGN

GLOBAL SOURCING

Global manufacturing GLOBAL MARKETING

GLOBAL DELIVERY

MARKETING STRATEGY

TARGET CUSTOMER AND MARKET SEGMENTATION

• IDENTIFICATION OF TARGET CUSTOMER SEGMENTS • ESTIMATION OF MARKET SIZE • GEOGRAPHIC SPREAD OF THE MARKET. • DEMOGRAPHIC CHARACTERISTICS. • GEOGRAPHIC CHARACTERISTICS. • ECONOMIC FACTORS. • SOCIOCULTURAL FACTORS.

Competitive Positions
Competitive Positions Market Leader
Firm with the Largest Market Share

Competitive Strategies
Expand Total Market Protect Market Share Expand Market Share Full Frontal Attack Indirect Attack

Market Challenger
Runner-Up Firms that Fight Hard to Increase Market Share

Market Followers
Runner-Up Firms that Want to Hold Their Share Without Rocking the Boat

Follow Closely Follow at a Distance By Customer, Market, Quality-Price, Service Multiple Niching

Market Nichers
Firms that Serve Small Segments Not Being Pursued by Other Firms

GLOBAL MARKET SEGMENTATION
SUBSISTENCE ECONOMIES RAW MATERIAL EXPORTING ECONOMIES

INDUSTRIALIZING ECONOMIES
INDUSTRIAL ECONOMIES
POST INDUSTRIAL SERVICE ECONOMIES

POSITIONING STRATEGY THAT EMPHASIZES UNIQUE AND SUSTAINABLE ADVANTAGES.

Strong
High

Average

Weak
Industry Attractiveness

Medium

Low
Business Strength
Business Strength Index * Market Share * Price Competitiveness * Product Quality * Customer Knowledge * Sales Force and Effectiveness * Geographic Advantage * Others Industry Attractiveness Index * Market size * Market Growth * Industry Profit Margin * Amount of Competition * Seasonality * Cost Structure

Positioning for Competitive Advantage: Strategies
Product Class Away from Competitors Product Attributes Benefits Offered
C D E B F

G H

A

Against a Competitor

Usage Occasions

Users

Selecting the Right Competitive Advantages

Important

Profitable

Affordable

Criteria for Determining Which Differences to Promote

Distinctive

Superior

Preemptive

Communicable

MARKET SHARE – GROWTH MATRIX
High
MARKET SHARE

Star

Cash Cow Dog

High Low
GROWTH RATE

MARKET DEVELOPMENT THE POTENTIAL FOR THE PRODUCT/SERVICE TO EXPAND ITS APPEAL TO OTHER SEGMENTS

Existing Product
Existing Market

New Products

Market Penetration

Product Development

New Market

Market Development

Diversification

MAKE GLOBALLY SELL LOCALLY.
SELL LOCALLY- ADAPTATION

GLOBAL MANUFACTURING

Beyond Lean Manufacturing and the Toyota Production System
Built-to-order strategy Adaptive production Production in networks Energy efficiency Integration of ICT Knowledge integration

Capabilities of

Life-cycle oriented business models

Next-generation Production System made in Europe beyond TPS

Long and medium term production planning
Industrial Engineering

Taylorism and work organization

Characteristics of Toyota Production System (TPS): Continuous improvements on shop floor level
Synchronized and standardized processes Maintenance Failure and waste avoidance Worker qualification

covered by TPS

Partially covered by TPS

Not covered by TPS

Adaptive Manufacturing
Enablers for Adaptive Manufacturing

Sensor - actor systems High performance and Real time control
Learning and Sensors for environment Modular structure -Embedding Electronics -Mechatronic Components -Internal Control System

Orders, Tasks Objectives Turbulent Environment

Feedback Data logging

Active Adaptation
• Self-organization • Self-optimization • Cooperation • Self-configuration • Self-control - Actoric, Sensoric • Learning

Demand Delivery

Demand Delivery

Standardised interfaces - Mechanical, - Electric/electronic - Software - ICT for networking

Orders Objectives

Feedback Data logging

Factory of the future: transformability on all levels
Factory structure levels 1 2 3 4 5 6 7 Production network Production locations Production segments Production systems Production cells Workplaces Machines Processes
Optimisation of production structure

Optimisation of factory layouts and system configuration

Optimisation of facilities and processes

Process chains

GLOBAL SOURCING

ADAPTIVE SUPPLY CHAIN NETWORK

Service Providers Raw Material Suppliers Real-Time

Retailers

Customer
Intermediate Manufacturers/ Distributors Suppliers Manufacturers/ Suppliers

Alignment

Today’s Sequential Supply Chain

75

Traditional sourcing techniques are evolving to Value-Based Sourcing

Focus of Sourcing – Approaches
Focus of Current Sourcing: Procurement of Goods and Services
Production Material Indirect Material • • • • Cordless Devices Chip sets/ASICS Battery Display Plastics/Resins/ Cradles • ...

Focus of VBS: Procurement of Supplier Capabilities
Targeted scope for VBS to build and manage intense value chain collaboration High Strategic relevance • Value creation potential along whole value chain • Differentiation sensitivity • ...
Low High Low

EMS

Time-to-Market Spec-Right-Sizing, Design-to Cost/tomanufacture/toserviceability for required technical or other (e.g. branding) capabilities

ODM/OEM

Relative capability performance to best practice • Critical Mass • Capacity • Experience • ...

To respond to the uncertainty introduced by macro and industry-specific drivers, value chains will need to develop the capabilities below

Required Capabilities
Collaborative

Definition

Working with upstream/downstream global ecosystem partners to achieve common goals, e.g., effective product design, production planning, forecasting, etc., that optimize value chain performance. Extending a firm’s control of resources through partnering and outsourcing. The firm is virtual in that it effectively controls an asset without owning it

Virtual

Synchronous

Coordinating value chain activity and data flow with global business partners to reduce costs and cycle times while increasing velocity throughout the value chain

Adaptive

Dynamic reconfiguration of the value chain to meet new customer needs and to leverage relative competitive advantage among value chain participants

Agile

Rapid expansion or contraction of the value chain in response to changing customer requirements with existing products, programs and services

Advanced sourcing techniques are being pursued by many leading companies
Advanced Sourcing Techniques
Level of Supplier Collaboration
Tiered Sourcing MegaSupplier Strategy Target Pricing Design -toCost Low Cost Country Collaborative Cost Reduction

Traditional Strategic Sourcing
Global Sourcing Best Price Evaluation Volume Consolidation

Level of Internal Coordination and Collaboration

LEVEDRAGING TECHNOLOGY FOR GLOBAL SOURCING MANUFACTURING AND DELIVERY

COMMUNICATIONS

A GLOBAL ENVIRONMENTAL SCAN Looking at the Global Marketing Environment

• Cultural Diversity
 Cross-Cultural Analysis
 Values

 Customs
 Lifestyle  Cultural Symbols  Language

Cultural appreciation

Five International Product and Promotion Strategies
Product
Do not change product Adapt product Develop new product
Do not change promotion

Promotion

Straight extension

Product adaptation
Product invention

Adapt promotion

Communication adaptation

Dual adaptation

Five product and promotion strategies for global marketing

Nestle in China
global market-entry strategy

Colgate Goes to China

Using aggressive promotional and educational programs, Colgate has expanded its market share from 7% to 35% in less than a decade.

MATTEL’S GLOBAL MARKETING IS MORE THAN CHILD’S PLAY

Diet Pepsi
What is global competition?

Marketing Mix Adaptation

In India, McDonald’s serves chicken, fish, and vegetable burgers, and the Maharaja Mac—two all-mutton patties, special sauce, lettuce, cheese, pickles, onions, on a sesame-seed bun.

McDonald’s Website A networked global marketspace

GLOBAL DELIVERY MODEL
Past
Platform Assembly OEM’s Large-scale Integration Value-added Parts and Assemblies Make-to-print Parts and Assemblies Raw Materials • Primarily direct supply • Many direct partners • No real role for “integrators” • Many “supply paths” • Fewer, but still many direct partners • Limited role for “integrators” • Larger role for valueadding partners • Fewer “supply paths” • Far fewer direct partners • Extensive role for “integrators” • Still larger role for valueadding parts partners System Integrators Sub System Integrators

Common Today

Next Step
System Integrators

GLOBAL SOURCING

MAKE GLOBALLY SELL LOCALLY.
SELL LOCALLY- ADAPTATION

Coca-Cola Russia Local adaptation of global product

Sign up to vote on this title
UsefulNot useful