This document provides a comparison of the international marketing strategies of Nestle, Unilever, and Procter & Gamble. It begins with an analysis of how globalization has impacted strategy and a discussion of different strategic approaches. It then profiles each company's historical strategy using an EPRG framework and describes their current hybrid strategies. Nestle uses customization and niche markets, Unilever focuses on developing local managers, and Procter & Gamble emphasizes innovation. Finally, it discusses theoretical frameworks for international strategy and conceiving strategies based on segmentation, targeting, and positioning.
A focused cost leadership strategy requires competing based on price to target a narrow market.
A firm that follows this strategy does not necessarily charge the lowest prices in the industry. Instead, it charges low prices relative to other firms that compete within the target market.
Procter & Gamble is one of the fastest and largest growing consumer market.
Case Study examines journey of P&G for Light Duty liquid Detergents in various aspects like promotion and development.
A focused cost leadership strategy requires competing based on price to target a narrow market.
A firm that follows this strategy does not necessarily charge the lowest prices in the industry. Instead, it charges low prices relative to other firms that compete within the target market.
Procter & Gamble is one of the fastest and largest growing consumer market.
Case Study examines journey of P&G for Light Duty liquid Detergents in various aspects like promotion and development.
Case Study : Procter and Gamble (P&G) Marketing CapabilitiesSarthak Rahate
Case Analysis of the Business case provided by Harvard business school; on the well-known consumer goods brand named Procter and Gamble (P&G).This case study shows how P&G excelled in reaching out to customers by various methods and advanced techniques. Further, the presentation tells about the journey of marketing progress made by P&G.
INTERNATIONAL ENTRY MODES
Criteria for Country selection :
Choosing Product to trade in International markets
Global Product Strategies
Strategy for new product launch
STANDARDIZATION VS ADAPTATION
FOREIGN MARKET ENTRY MODES
Maria Slavinska
2nd year, the faculty of international economics and management-211,
(research consultant: V. Lishchynska, senior lecturer)
THE GLOCAL MARKETING STRATEGY
Славінська Марія
ГЛОКАЛЬНА МАРКЕТИНГОВА СТРАТЕГІЯ
Славинская Мария
ГЛОКАЛЬНАЯ МАРКЕТИНГОВАЯ СТРАТЕГИЯ
Kellogg's - History, Evolution, Present and the FutureGreg Thain
A comprehensive background of Kellogg's containing its History and Origins, Early Evolution, Modern Business, Global Expansion, Company Structure, Recent Efforts and Company DNA. As one of the chapters of the book FMCG: The Power of Fast-Moving Consumer Goods by authors Greg Thain and John Bradley. For more details on their success story and that of other leading FMCG companies, check www.fmcgbook.com or Amazon http://amzn.to/1jRyd20.
Competitive dimensions - strategic management - Manu Melwin Joymanumelwin
According to Porter, two competitive dimensions are the keys to business-level strategy.
The first dimension is a firm’s source of competitive advantage.
The second dimension is firms’ scope of operations.
Jollibee Food Corporation-An International Expansion Case StudyKartik Mehta
A case study analysis, recommendations and solutions of the given questions from Jollibee Food Corporation on Global Expansion strategies.
Executive Summary:
Jollibee was a company originally established by the Tan family in 1975 as a family-owned ice cream parlor in the Philippines, but was soon forced to change its market caused by the oil crisis of 1977 - a factor which would have inherently caused the price of ice cream to double. Already established in the food industry and having overcome the initial barriers faced by those entering it, the Tan family successfully diversified the company to selling sandwiches. From that point, Jollibee began expanding their success by launching a total of five stores by 1978, founding what we see today as Jollibee Foods Corp.
Case Study : Procter and Gamble (P&G) Marketing CapabilitiesSarthak Rahate
Case Analysis of the Business case provided by Harvard business school; on the well-known consumer goods brand named Procter and Gamble (P&G).This case study shows how P&G excelled in reaching out to customers by various methods and advanced techniques. Further, the presentation tells about the journey of marketing progress made by P&G.
INTERNATIONAL ENTRY MODES
Criteria for Country selection :
Choosing Product to trade in International markets
Global Product Strategies
Strategy for new product launch
STANDARDIZATION VS ADAPTATION
FOREIGN MARKET ENTRY MODES
Maria Slavinska
2nd year, the faculty of international economics and management-211,
(research consultant: V. Lishchynska, senior lecturer)
THE GLOCAL MARKETING STRATEGY
Славінська Марія
ГЛОКАЛЬНА МАРКЕТИНГОВА СТРАТЕГІЯ
Славинская Мария
ГЛОКАЛЬНАЯ МАРКЕТИНГОВАЯ СТРАТЕГИЯ
Kellogg's - History, Evolution, Present and the FutureGreg Thain
A comprehensive background of Kellogg's containing its History and Origins, Early Evolution, Modern Business, Global Expansion, Company Structure, Recent Efforts and Company DNA. As one of the chapters of the book FMCG: The Power of Fast-Moving Consumer Goods by authors Greg Thain and John Bradley. For more details on their success story and that of other leading FMCG companies, check www.fmcgbook.com or Amazon http://amzn.to/1jRyd20.
Competitive dimensions - strategic management - Manu Melwin Joymanumelwin
According to Porter, two competitive dimensions are the keys to business-level strategy.
The first dimension is a firm’s source of competitive advantage.
The second dimension is firms’ scope of operations.
Jollibee Food Corporation-An International Expansion Case StudyKartik Mehta
A case study analysis, recommendations and solutions of the given questions from Jollibee Food Corporation on Global Expansion strategies.
Executive Summary:
Jollibee was a company originally established by the Tan family in 1975 as a family-owned ice cream parlor in the Philippines, but was soon forced to change its market caused by the oil crisis of 1977 - a factor which would have inherently caused the price of ice cream to double. Already established in the food industry and having overcome the initial barriers faced by those entering it, the Tan family successfully diversified the company to selling sandwiches. From that point, Jollibee began expanding their success by launching a total of five stores by 1978, founding what we see today as Jollibee Foods Corp.
59
Customizing
global
marketing
"The big issue today is
not whether to go global but how
to tailor the global
marketing concept to
fit each business."
John A. Quelch and
Edward /. Hoff
In the best of all possible worlds, mar-
keters would only have to come up with a great product
and a convincing marketing program and they would
have a worldwide winner. But despite the obvious
economies and efficiencies they could gain with a stan-
dard product and program, many managers fear that
global marketing, as popularly defined, is too extreme
to be practical. Because customers and competitive
conditions differ across countries or because powerful
local managers will not stand for centralized decision
making, they argue, global marketing just won't work.
Of course, global marketing has its pit-
falls, but it can also yield impressive advantages. Stan-
dardizing products can lower operating costs. Even
more important, effective coordination can exploit a
company's best product and marketing ideas.
Too often, executives view global mar-
keting as an either/or proposition-either full standard-
ization or local control. But when a global approach
can fall anywhere on a spectrum from tight worldwide
coordination on programming details to loose agree-
ment on a product idea, why the extreme view? In ap-
plying the global marketing concept and making it
work, flexibility is essential. Managers need to tailor
the approach they use to each element of the business
system and marketing program. For example, a manu-
facturer might market the same product under differ-
ent brand names in different countries or market the
same brands using different product formulas.
Mr. Quelch is an associate professor of
business administration at the Harvard Business School
where he teaches in the new Multinationa} Marketing
Management executive program. This is his sixth HBR arti-
cle, the last being "How to Build a Product Licensing Pro-
gram" (May-June 1985).
Mr. Hoff is a PhD candidate in business
economics at Harvard University. He was an instructor in
marketing at the Harvard Business School, which awarded
him a Dean's Doctoral Fellowship to complete his PhD.
The big issue today is not whether to go
global but bow to tailor the global marketing concept
to fit each business and how to make it work. In this
article, we'll first provide a framework to help manag-
ers think about how they should structure the different
areas of the marketing function as the business shifts
to a global approach. We will then show how compa-
nies we have studied are tackling the implementation
challenges of global marketing.
How far to go
How far a company can move toward
global marketing depends a lot on its evolution and tra-
ditions. Consider these two examples:
n Although the Coca-Cola Company had
conducted some international business before 1940, it
gained true global recognition during World War 11, as
Coke bottling plants followed the march of U.S. troops
around the world. Ma.
The strategic management for Nestle company which consist of SWOT Analysis, Value Chain Analysis, Pestle, Porter 5 Forces, along with reference list and appendices
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GROWTH STRATEGY OF UNILEVER IN EMERGING MARKETS.
During your weekly trip to the grocery store, you purchase bread, .docxsagarlesley
During your weekly trip to the grocery store, you purchase bread, milk, cold cereal, bananas, and ice cream. The purchase was made using a debit card.
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Running head: COMPANY ANALYSIS 1
COMPANY ANALYSIS 8
Company Analysis
BUS 692 Strategies in Human Resource Management
October 30, 2017
Company Analysis
Introduction
Unilever is one of the world’s leading fast-moving consumer goods organizations. The company provides products across different lines, including personal care, foods, home care, as well as refreshment categories. Headquartered in London, United Kingdom, Unilever is a multinational corporation that has expanded its operations in different parts of the world, including regions such as Asia Pacific, Europe, Middle East and Africa (Unilever Plc, 2017). In 2016, Unilever recorded an operating margin of 14.8 percent compared to an operating margin of 14.1 percent in 2015. The firm operates as a dual listed organization that has two major components: Unilever N.V and Unilever PLC. Unilever N.V is a public limited firm that is registered in Netherlands, while Unilever PLC is a public limited company that is registered in England and Wales. These two corporations function as a single operating business. However, they have retained their separate legal identities and stock exchange listings (Unilever Plc, 2017). The two parent organizations, alongside their Group companies, function as a single entity (Unilever). Further, Unilever is among the world’s premier fast-moving consumer goods organizations with a host of widely-known brands in foods, home care, refreshments, as well as personal are categories. Today, the company functions through four major product categories, namely: personal care, foods, home care, as well as refreshments.
Nature of the Organization
Industry
Unilever operates in the fast-moving consumer goods industry. Almost everyone in both developed and developing countries uses fast-moving products daily. These purchases are often made in small-scale. The sector is large and includes key players such as Unilever, General Mills, Coca-Cola, as well as Dole Foods (FRPT, 2017). Therefore, Unilever operates in a market that is characterized by stiff competition as rivals compete for a small and already-exhausted market segment. The industry often accounts for more than half of all consumers spending. However, these spending tend to be low-involvement purchases. The fast-moving consumer goods industry is expected to witness a growth (FRPT, 2017). After a low slowdown for the past here years, the industry is expected to grow more than 15 percent for the next three years, especially if players in the market emphasize on improving brand penetration.
Products/ Services
Unilever is one of the largest fast moving and consumer goods organi ...
The digital marketing industry is changing faster than ever and those who don’t adapt with the times are losing market share. Where should marketers be focusing their efforts? What strategies are the experts seeing get the best results? Get up-to-speed with the latest industry insights, trends and predictions for the future in this panel discussion with some leading digital marketing experts.
Short video marketing has sweeped the nation and is the fastest way to build an online brand on social media in 2024. In this session you will learn:- What is short video marketing- Which platforms work best for your business- Content strategies that are on brand for your business- How to sell organically without paying for ads.
Most small businesses struggle to see marketing results. In this session, we will eliminate any confusion about what to do next, solving your marketing problems so your business can thrive. You’ll learn how to create a foundational marketing OS (operating system) based on neuroscience and backed by real-world results. You’ll be taught how to develop deep customer connections, and how to have your CRM dynamically segment and sell at any stage in the customer’s journey. By the end of the session, you’ll remove confusion and chaos and replace it with clarity and confidence for long-term marketing success.
Key Takeaways:
• Uncover the power of a foundational marketing system that dynamically communicates with prospects and customers on autopilot.
• Harness neuroscience and Tribal Alignment to transform your communication strategies, turning potential clients into fans and those fans into loyal customers.
• Discover the art of automated segmentation, pinpointing your most lucrative customers and identifying the optimal moments for successful conversions.
• Streamline your business with a content production plan that eliminates guesswork, wasted time, and money.
Come learn how YOU can Animate and Illuminate the World with Generative AI's Explosive Power. Come sit in the driver's seat and learn to harness this great technology.
When most people in the industry talk about online or digital reputation management, what they're really saying is Google search and PPC. And it's usually reactive, left dealing with the aftermath of negative information published somewhere online. That's outdated. It leaves executives, organizations and other high-profile individuals at a high risk of a digital reputation attack that spans channels and tactics. But the tools needed to safeguard against an attack are more cybersecurity-oriented than most marketing and communications professionals can manage. Business leaders Leaders grasp the importance; 83% of executives place reputation in their top five areas of risk, yet only 23% are confident in their ability to address it. To succeed in 2024 and beyond, you need to turn online reputation on its axis and think like an attacker.\
Key Takeaways:
- New framework for examining and safeguarding an online reputation
- Tools and techniques to keep you a step ahead
- Practical examples that demonstrate when to act, how to act and how to recover
The What, Why & How of 3D and AR in Digital CommercePushON Ltd
Vladimir Mulhem has over 20 years of experience in commercialising cutting edge creative technology across construction, marketing and retail.
Previously the founder and Tech and Innovation Director of Creative Content Works working with the likes of Next, John Lewis and JD Sport, he now helps retailers, brands and agencies solve challenges of applying the emerging technologies 3D, AR, VR and Gen AI to real-world problems.
In this webinar, Vladimir will be covering the following topics:
Applications of 3D and AR in Digital Commerce,
Benefits of 3D and AR,
Tools to create, manage and publish 3D and AR in Digital Commerce.
Digital Commerce Lecture for Advanced Digital & Social Media Strategy at UCLA...Valters Lauzums
E-commerce in 2024 is characterized by a dynamic blend of opportunities and significant challenges. Supply chain disruptions and inventory shortages are critical issues, leading to increased shipping delays and rising costs, which impact timely delivery and squeeze profit margins. Efficient logistics management is essential, yet it is often hampered by these external factors. Payment processing, while needing to ensure security and user convenience, grapples with preventing fraud and integrating diverse payment methods, adding another layer of complexity. Furthermore, fulfillment operations require a streamlined approach to handle volume spikes and maintain accuracy in order picking, packing, and shipping, all while meeting customers' heightened expectations for faster delivery times.
Amid these operational challenges, customer data has emerged as an important strategy. By focusing on personalization and enhancing customer experience from historical behavior, businesses can deliver improved website and brand experienced, better product recommendations, optimal promotions, and content to meet individual preferences. Better data analytics can also help in effectively creating marketing campaigns, improving customer retention, and driving product development and inventory management.
Innovative formats such as social commerce and live shopping are beginning to impact the digital commerce landscape, offering new ways to engage with customers and drive sales, and may provide opportunity for brands that have been priced out or seen a downturn with post-pandemic shopping behavior. Social commerce integrates shopping experiences directly into social media platforms, tapping into the massive user bases of these networks to increase reach and engagement. Live shopping, on the other hand, combines entertainment and real-time interaction, providing a dynamic platform for showcasing products and encouraging immediate purchases. These innovations not only enhance customer engagement but also provide valuable data for businesses to refine their strategies and deliver superior shopping experiences.
The e-commerce sector is evolving rapidly, and businesses that effectively manage operational challenges and implement innovative strategies are best positioned for long-term success.
Top 3 Ways to Align Sales and Marketing Teams for Rapid GrowthDemandbase
In this session, Demandbase’s Stephanie Quinn, Sr. Director of Integrated and Digital Marketing, Devin Rosenberg, Director of Sales, and Kevin Rooney, Senior Director of Sales Development will share how sales and marketing shapes their day-to-day and what key areas are needed for true alignment.
A.I. (artificial intelligence) platforms are popping up all the time, and many of them can and should be used to help grow your brand, increase your sales and decrease your marketing costs.In this presentation:We will review some of the best AI platforms that are available for you to use.We will interact with some of the platforms in real-time, so attendees can see how they work.We will also look at some current brands that are using AI to help them create marketing messages, saving them time and money in the process. Lastly, we will discuss the pros and cons of using AI in marketing & branding and have a lively conversation that includes comments from the audience.
Key Takeaways:
Attendees will learn about LLM platforms, like ChatGPT, and how they work, with preset examples and real time interactions with the platform. Attendees will learn about other AI platforms that are creating graphic design elements at the push of a button...pre-set examples and real-time interactions.Attendees will discuss the pros & cons of AI in marketing + branding and share their perspectives with one another. Attendees will learn about the cost savings and the time savings associated with using AI, should they choose to.
The Forgotten Secret Weapon of Digital Marketing: Email
Digital marketing is a rapidly changing, ever evolving industry--Influencers, Threads, X, AI, etc. But one of the most effective digital marketing tools is also one of the oldest: Email. Find out from two Houston-based digital experts how to maximize your results from email.
Key Takeaways:
Email has the best ROI of any digital tactic
It can be used at any stage of the customer journey
It is increasingly important as the cookie-less future gets closer and closer
Financial curveballs sent many American families reeling in 2023. Household budgets were squeezed by rising interest rates, surging prices on everyday goods, and a stagnating housing market. Consumers were feeling strapped. That sentiment, however, appears to be waning. The question is, to what extent?
To take the pulse of consumers’ feelings about their financial well-being ahead of a highly anticipated election, ThinkNow conducted a nationally representative quantitative survey. The survey highlights consumers’ hopes and anxieties as we move into 2024. Let's unpack the key findings to gain insights about where we stand.
How to Run Landing Page Tests On and Off Paid Social PlatformsVWO
Join us for an exclusive webinar featuring Mariate, Alexandra and Nima where we will unveil a comprehensive blueprint for crafting a successful paid media strategy focused on landing page testing.With escalating costs in paid advertising, understanding how to maximize each visitor’s experience is crucial for retention and conversion.
This session will dive into the methodologies for executing and analyzing landing page tests within paid social channels, offering a blend of theoretical knowledge and practical insights.
The Pearmill team will guide you through the nuances of setting up and managing landing page experiments on paid social platforms. You will learn about the critical rules to follow, the structure of effective tests, optimal conversion duration and budget allocation.
The session will also cover data analysis techniques and criteria for graduating landing pages.
In the second part of the webinar, Pearmill will explore the use of A/B testing platforms. Discover common pitfalls to avoid in A/B testing and gain insights into analyzing A/B tests results effectively.
The digital marketing industry is changing faster than ever and those who don’t adapt with the times are losing market share. Where should marketers be focusing their efforts? What strategies are the experts seeing get the best results? Get up-to-speed with the latest industry insights, trends and predictions for the future in this panel discussion with some leading digital marketing experts.
Most small businesses struggle to see marketing results. In this session, we will eliminate any confusion about what to do next, solving your marketing problems so your business can thrive. You’ll learn how to create a foundational marketing OS (operating system) based on neuroscience and backed by real-world results. You’ll be taught how to develop deep customer connections, and how to have your CRM dynamically segment and sell at any stage in the customer’s journey. By the end of the session, you’ll remove confusion and chaos and replace it with clarity and confidence for long-term marketing success.
Key Takeaways:
• Uncover the power of a foundational marketing system that dynamically communicates with prospects and customers on autopilot.
• Harness neuroscience and Tribal Alignment to transform your communication strategies, turning potential clients into fans and those fans into loyal customers.
• Discover the art of automated segmentation, pinpointing your most lucrative customers and identifying the optimal moments for successful conversions.
• Streamline your business with a content production plan that eliminates guesswork, wasted time, and money.
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International Marketing Strategies - Research Paper
1. 0
K. J. SOMAIYA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH
Comparison of the
international marketing
strategies of Nestle S.A.,
Unilever NV/Unilever PLC
and The Procter & Gamble
company
Research Paper
Vikas Sonwane PGDM-IB 3rd Trimester | Roll no. 53
Guide: Prof. C. P Joshi
2. 1
Abstract
This paper aims to provide a comparison of international strategies adopted by the world’s three
biggest FMCG companies, Nestle S.A., Unilever NV/Unilever PLC and the Procter and Gamble
Company. Everything starts from analyzing the impact of globalization on the removal of cross
borders and the extent to which this is reflected into a trend towards a common, global strategy
manifested on the global market. Yet, this transition doesn’t occur suddenly; any company
passing from a domestic position to a global one shall undergo several stages and adopt various
instruments allowing it to go forward. Building on this base, two perspectives have been
provided, a classical E.P.R.G framework was applied to learn how the companies have run
historically and how they have evolved, and a study of the present hybrid international
marketing strategies used by these companies.
Keywords: Globalization, international marketing, Nestle S.A., Unilever NV/Unilever PLC and
the Procter and Gamble Company.
3. 2
Introduction
Globalization as a phenomenon can be defined as the growth of economic activity spanning
politically defined national and regional boundaries. It finds expression in the increased
movement across the boundaries of goods and services, viz. trade and investment, and often of
people via migration.1 This phenomenon leads to a rapidly changing and diverse competitive
global market; to survive and thrive in such an environment MNEs have to develop their
sustainable competitive advantage through an effective international marketing strategy.2 There
are different approaches to marketing in a globalized world. A centralised approach with a
national inward orientation, centralized approach with international cooperation, a highly
dispersed approach with competition among independent units, dispersed and strong centre with
supportive role of foreign sub units. Nestle S.A., Unilever NV/Unilever PLC and P&G Company
are some of the world’s largest and oldest enterprises and each have their own international
marketing strategy to do business. This research paper conducts a comparison between these
companies’ international marketing strategies and how they execute them. The objective of the
research is to give a perspective of the international marketing strategies used by these
companies to compete on a global level and develop a theoretical framework explaining them.
Nestle S.A.
Nestle S.A., the Swiss multinational food and beverage company headquartered in Vevey,
Switzerland is the largest food company in the world measured by revenues. The international
marketing strategy adopted by Nestle is of a decentralized system which consists of specifically
molded facilities which are made to fit in to that country's culture, habit, and conditions. Nestlé
uses the strategy which correlates the ratio of increase in income to use of branded food
products, which means as a person earns more and has less time for making food in his/her
home, they will automatically substitute for branded products. In general the company’s strategy
has been to enter emerging markets early before its competitors and build a substantial customer
base by selling products which suit the local population such as infant formula, milk, and
1 Daniels,J., Radebaugh, L., Sullivan,D.(2009). “International Business: Environments and Operations (12th
Edition).” Upper SaddleRiver, NJ: Pearson Education, Inc.
2 Fraser,Cynthia & Hite, Robert E., 1990. "Impact of international marketing strategies on performance in diverse
global markets," Journal of Business Research,Elsevier,vol.20(3), pages 249-262,May
4. 3
noodles. Nestlé narrows down its market share to many small niche markets, as opposed to
general or one for all strategies. Nestlé keeps the goal of commanding the niche markets by
gaining at least 85% of market share in every food product it launches. Customization is the key
to Nestlé’s global brand identity rather than universalism, which means Nestlé, uses global brand
identity but, from the internal point of view, it uses local ingredients and other technologies that
resonate with the local environment and brand name that is known globally.34
Unilever NV/Unilever PLC
Unilever, the Dutch-British FMCG company having operations in around 190 countries is one of
the foremost multinationals. It has evolved through actual practice as a business and not through
application of management theory; regardless of the process it has become transnational in the
most basic sense. Its fast-moving product portfolio requires proximity to local markets, although
economies of scale in certain functions justify some centralized control. Most important, a
flexible matrix of individual managers around the world shares a common understanding of
corporate strategy. Through all the changes, many based on trial and error, the company has
maintained two consistent practices: developing high-quality managers and linking decentralized
units through the "Unileverization" of those managers. In fact, many consider Unilever's
managerial recruitment and training policies to be the best in the world. The company has a
strong tradition of developing local talent in its subsidiaries, but the head office also expects
managers to gain experience in more than one country or product line.5 Unilever changed the
way international FMCG companies sell a product in developing markets that is you use a local
label and market to the elite. Unilever changed that. The Anglo-Dutch maker of such brands as
Dove, Lipton, and Vaseline built a following among the world's poorest consumers by upending
some of the basic rules of marketing. Instead of focusing on value for money, it shrunk packages
to set a price even consumers living on $2 a day could afford.6
3 Yavuz Kose, CHARM 2005, “Nestle. A brief history of the marketing strategies of the firstmultinationa l company
in the Ottoman Empire.”
4 The Economist, Aug 2004, “Daring,defying, to grow.”
5 Maljers,FA 1992,'InsideUnilever: The EvolvingTransnational Company', Harvard Business Review, 70, 5, pp. 46-
52
6 Capell,K 2008,'UNILEVER', Businessweek, 4113,p. 47.
5. 4
The Procterand Gamble Company
P&G Co., the American multinational consumer goods company headquartered in downtown
Cincinnati, Ohio, United States, is considered the most innovative FMCG product based
company in the world. Procter & Gamble has built an organization with an innovative culture.
Everybody can contribute to new product development either through research and development
or through their focus, energy and commitment to their role. This approach to innovation is not
new. For example, Procter & Gamble’s dedication to innovation led to the development of Flash,
a revolutionary brand for its time. Since its launch many hundreds of innovations now enable it
to cater for many more situations within the household much more efficiently. Similarly P&G
created the disposable nappy business by introducing Pampers. In a fast-changing world an
innovative culture helps an organization constantly move forward. Having an innovative culture
has actively helped Procter & Gamble develop and transfer technologies and bring new products
to market. Creating innovations that give people products which make their lives easier and
better is what creates a competitive advantage for P&G. And is what has helped P&G become
the successful global business it is today. 78
7 'COMPANY SPOTLIGHT: THE PROCTER & GAMBLE COMPANY' 2011,Marketwatch: Personal Care, 10, 10,pp. 13-
20, Business SourceComplete, EBSCOhost, viewed 12 March 2014
8 'Procter & Gamble's innovation success:New research, new products,new markets' 2005, Strategic Direction, 21,
7, pp. 11-13,
6. 5
Classicalapplicationof a theoreticalframework
The classic research for developing international marketing strategies is done on the E.P.R.G
framework which asks international marketing managers how should they should cope with the
new scope of operations, and whether they can apply domestic strategies to international
markets.9
The E.P.R.G.Frameworkand Marketing Decisions10
A key assumption underlying the E.P.R.G. framework is that the degree of internationalization to
which management is committed (or willing to move toward) affects the specific international
strategies and decision rules of the firm. Based on this assumption and the nature of the E.P.R.G.
orientations, hypothetical profiles of typical marketing strategies associated with each orientation
may be inferred.
Ethnocentric Orientation
In the ethnocentric company, overseas operations are viewed as secondary to domestic
operations and primarily as a means to dispose of "surplus" domestic production. Plans for
overseas markets are developed in the home office, utilizing policies and procedures identical to
those employed in the domestic market. Overseas marketing is most commonly administered by
an export department or international division, and the marketing personnel is composed
primarily of home country nationals. No systematic research is conducted overseas, and no major
modifications are made to products sold in overseas markets. Prices are calculated on the same
basis as in the home market, with the addition of overseas distribution costs. Promotion and
distribution strategies are similar, to the extent possible, to that employed in the home country.
The sales force is trained and hired in the home country. It operates from a home country base,
and there is likely to be strong reliance on export agents.
Polycentric Orientation
In the polycentric stage, subsidiaries are established in overseas markets. Each subsidiary
operates independently of the others and establishes its own marketing objectives and plans.
Marketing activities are organized on a country-by-country basis, and marketing research is
conducted independently in each country. Separate product lines are developed in each country,
and home country products are modified to meet local needs. Each subsidiary establishes its own
pricing and promotion policy. The sales force in each country is composed of local nationals, and
the channels of distribution are those traditionally used in each country.
9 Wind,Yoram, Susan P. Douglas,and Howard V. Perlmutter. "Guidelines for Developing International Marketing
Strategies." Journal of Marketing 37.2 (1973): 14. Print
10 Howard V. Perlmutter, "The Tortuous Evolution of
the Multinational Corporation,"Columbia Journal of
World Business,Vol.IV, (January-February,1969) pp. 9-18
7. 6
Regiocentric and Geocentric Orientations
In the regiocentric and geocentric phases the company views the region or the entire world as a
potential market, ignoring national boundaries. The firm develops policies and organizes
activities on a regional or worldwide basis. Marketing personnel include people from the region
or from any country of the world. Standardized product lines for regional or worldwide markets
are developed, and pricing is established on a similar basis. Promotional policy is developed
regionally or worldwide to project a uniform image of the company and its products. Regional or
global channels of distribution are also developed.
An exploratory empirical study was conducted to provide initial insights in the validity of the
framework. The perceptions and preferences of international executives toward the current and
future appropriateness of each of these alternative orientations and associated strategies were
assessed. The conclusions of the studies11 were that the degree of international orientation alone
does not appear to provide sufficient guidelines for developing international marketing policies
and there appears to be no single superior or dominant international orientation.
TheoreticalFrameworkfor the present globalizedworld12
Most of the firms are eyeing at the global marketplace to improve their competitiveness.
Considerable controversy has arisen in recent years, concerning the most appropriate strategy in
international markets. Deciding how to deal with the globalization of markets, poses tough issues
and choices for managers and their firms. they must consider both – external environmental
forces and internal organizational factors, before they arrive at an international marketing
strategy. 13
However, as mentioned earlier, every industry cannot be a global industry, and some have to
adopt ‘multidomestic strategy’. Table-2 lists four dimensions and their respective positions under
pure multi-domestic strategy and a pure global strategy. For each dimension, a multi-domestic
strategy seeks to improve worldwide performance by maximizing local competitive advantage,
revenue or profits. On the other hand, a global strategy seeks to maximize worldwide
performance through sharing and integration.
11 Howard V. Perlmutter, Functional Studies Using the
E.P.R.G. Categorization: Types of Headquarters Orientation Towards Subsidiaries in an International Enterprise,
Technical Memo B.R. 3:2, Division for Research and Development of WorldwideInstitutions,Wharton School,
University of Pennsylvania;and David Heenan, "The E.P.R.G. Approach to the Manpower Development Function,"
WorkingPaper 1972,Wharton School, University of
Pennsylvania,Philadelphia.
12 Prafulla Agnihotri,Hemlatha Santhanam,“International MarketingStrategies For Global Competitiveness”
13 Porter, ME 1990,'The Competitive Advantage of Nations. (cover story)', Harvard Business Review, 68, 2, pp. 73-
93.
8. 7
Table 1: Henry Mintzberg, James Brian Quinn, 1996, The Strategy Process Concepts,Contests, Cases.14
Table 2: Yip, G.S. (1991)15
14 Henry Mintzberg, James Brian Quinn,1996,The Strategy Process Concepts, Contests, Cases.
15 Global Strategy. In A World Of Nations Yip, George S. Sloan Management Review; Fall 1989;31,1; ABI/INFORM
Complete
pg. 29
Industry Globalization drivers
Market Drivers Cost/Economic drivers
Convergence of lifestyles & taste
• Increased travel creating global consumer
• Growth of global and regional channels
• Establishment of world brands
• Push to develop global advertising
• Shortening product life cycle
• Continuing push for economies of scale.
• Accelerating technological innovation
• Advances in transportation
• Emergence of NIC
• Increasing cost of product development
Government Drivers Competitive Drivers
Reduction of tariff barriers
• Creation of trading blocs
• Decline in role of government
• Reduction in non-tariff barriers
• Shift in open market economies
• Increase in level of world trade
• Increase in foreign acquires of corporation
• Companies becoming globally centered
• Increased formation of global strategic alliances
• Globalization of financial markets
International Marketing Strategies
Dimensions Setting for pure multi-
domestic strategy
Setting for pure global
strategy
Market Participation No particular pattern Significant share in major
markets
Product offering Fully customized in each
country
Concentrated one activity in
each country
Market approach Local Worlwide uniform
Competitive Moves Stand-alone for country Integrated across country
9. 8
Conceiving and developing international marketing strategies based on the framework
A marketing strategy is the process allowing an organization to focus its limited resources on the
best possible opportunities in order to increase its sales and to achieve a sustainable competitive
advantage. It should be always centered on the key concept that customer’s satisfaction is the
main goal, this allowing the achievement of the company final objective, that is profit. But in
order to conceive a marketing strategy there is a long and difficult way to go. Any marketing
strategy involves three basic actions that should be undertaken in order to succeed: segmentation,
targeting, and positioning. Segmentation means partitioning the market in order to select one or
more market segments to be targeted by developing specific marketing mixes adapted to
particular market needs. In general marketing, segmentation is usually done at the customer
level. Yet, in international marketing, we can treat entire countries as segments. These
approaches may cross the existence of a company undergoing an international involvement
process. We have, on one side, intra-market segmentation involving the segmentation of the
country markets and, on the other side, inter-market segmentation involving the identification of
the segments existing across borders. This latter approach can bring various benefits to the
company. The possibility to use products and promotional campaigns across markets introduces
economies of scale, while accumulating knowledge on one market may be usefully used in
another one, this involving in fact a solid knowledge management process. Yet, a fact is certain:
even if we may found similarities between segments across cultures, analyzing and
understanding the local market remains a must under any circumstances. The next step after the
separation of the market into its segments is to select one segment or several segments and to
target it/them. Here, we have three strategic approaches valid both at national and international
marketing level: the non-differentiated strategy - the differences between segments are ignored, a
single product being targeted for all segments (the whole market), the strategy focussed on a
single segment - a single product offered to a single segment on a market containing various
segments and the multi-segment strategy - different segments are targeted by supplying a series
of differentiated products. Positioning is certainly one of the useful instruments to succeed on the
market. After
having segmented the market and after having targeted the consumers follows the positioning of
the company’s products on that market, that is deciding where it wants its products or services to
be “placed” against the crucial variables applied by its customers or by the market. What is
important to retain is that positioning is about consumers’ perception of a product or service in
10. 9
relation to its competitors. Being a deeply subjective psychological factor, perception differs
from one person to another; thus we cannot expect to have the same perceptions as for quality,
value for money, etc., for the entire segment, but we shouldn’t deny the existing similarities
either. Considering this, the international company is in the position to choose whether to adapt
its products to the unique demands of a country market or to gain benefits, such as cost savings
and the maintenance of a consistent global brand image, from standardization. Irrespective of its
choice, entering products on foreign markets doesn’t occur suddenly; it
takes time and involves the use of specific strategies among which: exporting - a relatively low
risk strategy, few investments being made in the target country; licensing and franchising – low
risk approaches consisting in offering to another company your company’s trademarks and
concerned activity-related background; turnkey projects - using knowledge and expertise
gathered in one or many markets in order to provide a buyer from another country with a
working project; management agreements - managing a facility in a foreign country by using
knowledge gathered elsewhere, in other markets; agreement manufacturing - assigning to
someone else the liability to manufacture products, the company undertaking certain marketing
efforts, thus saving investments; direct entry strategies - highly risky but potentially profitable
strategies when the company either acquires another company or builds operations; an alternative
of the latter penetration strategy would be setting up a joint venture, the local company
contributing with money and knowledge about the local market. The international pricing
strategy is perhaps the most difficult thing to do in a marketing mix. Beside analysing the well-
known elements specific to any domestic pricing strategy, such as: total costs (costs of resources,
labour costs, maintenance costs etc.), company goals, level of competition (direct and indirect
competitors), level of revenue, inflation rate, unemployment rate of the target segment(s), level
of demand and so on, the company acting internationally should also consider: the transportation
costs, the customs duties, the exchange rate between the two currencies or the overall economic
standing of the target country. It is very important for a company to consider all these issues and
to establish a correct price (obviously without neglecting the quality of its goods and services),
since this doesn’t affect only its current profitability but it determines the good or service
perception on the market, thus ensuring a long-term profitability or loss for that company. For
any company, adequately distributing or placing its goods or services, making them available in
due time and at the right place for its customers, is vital. This can be done by using specialized
distribution channels forwarding the goods or services from manufacturers to consumers. On the
11. 10
international market, a natural distribution channel can be either direct, using the company own
sales force, distributors or other intermediaries or indirect, using sales agents and distributors
originating in the foreign target country. Direct distribution provides the company with much
more control but it makes it undertaking, at the same time, more responsibility and many risks,
because it has to deal with an unknown foreign market. Indirect distribution, in exchange
provides the company with very little or possibly with no control over the distribution of its
products and impedes the communication with and the feedback from the end users. This is the
reason why, when choosing its international distribution strategy, the company should consider
any available alternative and correctly assess it, taking into account the level of risk it can
assume, and finally selecting the best distribution methods. Both domestic and international
marketing mix analysis proves to be a key step in achieving effective strategy, its 4 Ps being the
driving mechanism that puts into operation the company success.
Conclusion
We live in a world getting each day closer to globalization. Given these circumstances,
undertaking international market actions becomes a necessary condition, allowing companies to
adapt themselves to this new and perpetually changing world. They have to prove a continuous
and a systematic ability to merge their capacity with the external market opportunities. But this
cannot be done all of the sudden; it involves time, knowledge, experience and dedication; it also
involves a conscious and thorough analysis of the international market, in all respects, and an
adequate planning of the future steps to be taken, this meaning in fact a constructive international
marketing strategy. Companies should find the most appropriate ways to adjust themselves to the
local market conditions; they should endeavor to conceive a marketing mix ensuring all premises
as for meeting the local demands and thus affirming themselves on the international market, as
this is, after all, the ultimate goal. Creating and implementing an international marketing strategy
directed towards guiding every single aspect of the company life, engendering new systems and
information on customers and markets and encouraging best actions and innovations, at all
companies’ levels, is the fundamental way to success. As world changes, companies have also to
change. This is the reason why no international marketing approach is fresh enough; it should be
continuously updated and adapted to the newly occurring conditions.
12. 11
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