Global Marketing Management: Planning and Organization
Global Marketing Management: Planning and Organization
Section A: Global Marketing Management
Global Marketing Management: An Old Debate and a New View:
The approaches to global marketing have revolved over the decades. The following trends have been observed:
▪ 1970’s: “standardization vs. adaptation” ▪ 1980’s: “globalization vs. localization” ▪ 1990’s: “global integration vs. local responsiveness” ▪ 2000’s: mixture of global, localization
The recent trend of mixture of global and localization is caused by the new efficiencies of customization made possible by the Internet and increasing flexible manufacturing processes. For example, one of the largest computer manufacturers of the world, Dell Computer Corporation maintains no inventory and builds each computer after order.
Another crucial reason behind this global/local mixture is the apparent rejection of the logic of globalism by trade unionists, environmentalists and consumers. That’s why Coca-Cola is maintaining two brands in India – Coke and Thumps Up.
The Nestle Way: Evolution Not Revolution:
The global food giant is not bothered about the debate on standardization vs. adaptation. From the very beginning, Nestle was international. The ‘Nestle Way’ is to dominate its markets. Its overall strategy is:
✓ Think and plan long term ✓ Decentralize ✓ Stick to what you know ✓ Adapt to local tastes
To see how Nestle operates, considering the example of Poland.
After breaking up of Soviet Union, Poland emerged as a big market for the food items. The Nestle executives decided that it would take too long to build plants there and create brand awareness. Instead they acquired the 2nd largest chocolate maker of the country, Goplana and adjusted the end product by small changes every two months over a two-year period until it measured up to Nestlé’s standards. These efforts along with all-out marketing put the company very close to the market leader. Nestle also purchased a
Section A: Global Marketing Management
Global Marketing Management: An Old Debate and a New View:
The approaches to global marketing have revolved over the decades. The following trends have been observed:
▪ 1970’s: “standardization vs. adaptation” ▪ 1980’s: “globalization vs. localization” ▪ 1990’s: “global integration vs. local responsiveness” ▪ 2000’s: mixture of global, localization
The recent trend of mixture of global and localization is caused by the new efficiencies of customization made possible by the Internet and increasing flexible manufacturing processes. For example, one of the largest computer manufacturers of the world, Dell Computer Corporation maintains no inventory and builds each computer after order.
Another crucial reason behind this global/local mixture is the apparent rejection of the logic of globalism by trade unionists, environmentalists and consumers. That’s why Coca-Cola is maintaining two brands in India – Coke and Thumps Up.
The Nestle Way: Evolution Not Revolution:
The global food giant is not bothered about the debate on standardization vs. adaptation. From the very beginning, Nestle was international. The ‘Nestle Way’ is to dominate its markets. Its overall strategy is:
✓ Think and plan long term ✓ Decentralize ✓ Stick to what you know ✓ Adapt to local tastes
To see how Nestle operates, considering the example of Poland.
After breaking up of Soviet Union, Poland emerged as a big market for the food items. The Nestle executives decided that it would take too long to build plants there and create brand awareness. Instead they acquired the 2nd largest chocolate maker of the country, Goplana and adjusted the end product by small changes every two months over a two-year period until it measured up to Nestlé’s standards. These efforts along with all-out marketing put the company very close to the market leader. Nestle also purchased a