Think Globally Act locally

Glocalization

Definition of “GLOCALISATION”Product or services

designed to benefit a LOCAL MARKET while at the same time being developed and distributed on a GLOBAL LEVEL.

Glocalisation is the mixture of and the end result of combining of the words Globalization and Localization.

Key Players

Multinational firms (which carry out business across the national borders)The World Trade Organization (WTO) through which international trade agreements are negotiated& enforcedThe World Bank & International Monetary Fund (IMF) are means to assist Government in achieving development aims through the provision of loans, technical assistance.

Glocalization

Well-known examples of Glocalized MNCs

• Lays• Starbucks• McDonald’s• AT&T• Pepsi Co.• KFC• Tesco• Hindustan Lever Limited• Ford

These are some of the popular Glocalized MNC’s.*Previously Nokia was also there in the list

• Volks vagon• MTV• Whirlpool• Subway• Coca cola• Dell• Lenova• Gillette• Heinz

STAGES IN GLOBALISATION

• Local Strategy Approach• International Strategy Approach• Multinational Strategy Approach• Global Strategy Approach

Conditions for Glocalisation

• Business Freedom (like liberalization)• Facilitators (like infrastructure etc)• Government (subsides, taxes, allowances etc.)• Competitors (market strength, after sale

services etc)• Resources (like finance, technology, raw

materials needed etc.)

International Pricing Strategies

Pricing on an international scale is difficult. As well as taking into account traditional price considerations

• Fixed and variable costs,• Competition,• Company objectives ,• Proposed positioning strategies,• Target group and willingness to pay,

Advantages of Glocalisation

Attracts more consumers in the market It is flexible Higher profits. Adapts to different countries and avoids

ethical issues. Avoids ethical costs.

Disadvantages of Glocalization

Time consuming process Lengthy process Need expert advice Cannot suitable for small firms Researching inflexible other markets. If not successful waste of money for the firm.

International Product Strategies Standardization Vs Adaption

Basic marketing concepts tell us that we will sell more of a product if we aim to meet the needs of our target market. In international markets, we have to take into consideration consumer’s cultural background, buying habits, levels of personal disposable income etc in order to deliver a tailored marketing mix program to suit their needs.

• In today’s global world, where consumers travel more, watch satellite television, communicate and shop internationally over the internet, the world now is becoming a lot smaller. Because of this there is no need to adapt products to local markets.

• Brands such as Coca-Cola, MTV, Nike, Levis are all successful global brands where they have a standardized approach to their marketing mix, all these products are targeted at similar groups globally.

• In many circumstances a company will have to adapt their product and marketing mix strategy to meet local needs and wants that cannot be changed.

• McDonald is a global player however, their burgers are adapted to local needs. In India where a cow is a sacred animal their burgers are served with chicken or fish.

• Coca-cola is some parts of the world taste sweeter then in others. Yes we can argue that standardization is better for the organization because it reduces cost, however many organizations will have to ‘think global, but act local’ if they are to successfully establish them selves in foreign markets.

Types of International strategy

Multi-count

ry

Global

Multi country competition strategy

• It varies somewhat across nations, since –

• Buyers in different countries are attracted to different product attributes.

• Sellers vary from country to country.• Industry conditions & competitive

forces in each national market differ in important aspects.

Addition to Multi Country strategy• Product customized for each market.• Decentralized control—Local decision making.• Effective when large difference exists

between the countries.• Advantageous product differentiation, local

responsiveness, minimal political risk.• With multi country competition , rival firms

battle for national leadership & winning in one country does not necessarily signals the ability to fare well in other countries.

Global Strategy

Global strategy involves consistent strategy for each country which includes:

• Integrating & coordinating the company's strategic moves worldwide.

• Selling in many if not all nations where there is significant buyer demand.

Cont..

• Product is same in countries.• Centralized control• Effective when the difference between the

countries is small.• Advantage cost, coordinated activities, fast in

product development.

Tensions of Glocalisation

Starbucks in Shanghai, China Starbucks in Kuwait

Starbucks

Starbucks in Moscow, Russia

Let’s move to Pepsi Co & Coca Cola

Pepsi in Japan: Style and Flavor Special “Azuki” Pepsi in Japan

Coca-Cola Cans Around the World

Let’s also have

an eye on

KFC and McDonald’s

Kentucky Fried Chicken: Morocco

McDonalds and “Glocalization”

Saudi Arabia and Israel

Japan and Russia

China and France: Shrimp Burger and Croque Monsieur

India and Arabic Nations: potato burger and spiced beef on a pita.

More Glocalized Social Networks

Arabic (Muslim) Barbie

Modern Barbies in Arab Countries

Barbies in African Countries

More Consolidated Examples

Conclusion• Thus in these Modern days Glocalization

becomes as a trending topic and many Multi national Companies(MNC’s) started adopting this technique.

• So, just add a new word to your Dictionary i.e., GLOCALIZATION

Think Global, Act Local

Presented by• Tanmayee.T• Vaishnavi.S• Varsha Jain• Yakshi Chauhan• Richa Jain