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Why Global Strategies Sometimes Fail

Part-1- evaluates the reasons why global strategies sometimes fail in their objective to accomplish a worldwide marketing advantage. Present a few organizations as samples and analyse what strategic alternatives could have enabled the firms meet their commercial and functional aims.


'The world today is a global village' it goes without saying. However the global town still has some tribes and it is very important to keep all the tribes happy if we have to have good marriage with all of them. Since the globe is accessible to everyone, additionally it is vital to create the online marketing strategy and develop it in the point of view of modifications in the culture, traditions, preference, weather and norms of an country.

One of the most striking trends running a business has been growing internationalization of the business. Companies 're going global but they have to keep their customers satisfied domestically and internationally. The internationalization afflicted the business enterprise strategies and the firms are in the rethinking process to counter the issues in the global marketing strategies. Marketing is no exception to the. Attitude of the clients in this regard is vital for creating the online marketing strategy, particularly when you are going global. You will discover four different kinds of attitudes normally observed in the globe, i. e. ethnocentrism (home country orientation), polycentrism (host country orientation), regiocentrism (a local orientation) and geocentrism (a world orientation). Each attitude needs to be dealt matching to its own pro and disadvantages but the quite typical mode to be in an international market is by using a global brand. Now it is the internal decision of the company whether it wishes going for standardization or adaptation. If we speak about standardization, this means the company will keep producing the merchandise according to their own standard and the customers should conform their products. But version strategy can be used where a company wishes to revolutionize itself in line with the hopes of its customers internationally.

Developing a global brand largely depends on the brands capacity to explore fresh avenues and to preserve its competitive advantages in terms of economies of size and productivity. A global brand is the one that is recognized to reflect the same group of values about the world. A global brand eliminates the national obstacles and linguistic blocks while marketing internationally. The basic of brand building applies to the global branding strategy also. For a brand to be successful, an authentic demand or a mental need must are present in the market. Today when we are looking at a worldwide market, you have to realize that at most basic level all human beings share common physiological and basic safety needs as discussed by Maslow (Maslow's theory of basic needs). What separates a person from another customer at some distant geographic location is the complicated social, social and esteem needs of the customer depending upon the stage at which the civilization/ nation is in the process of development.

There are extensive situations when the global marketing strategies fail and it makes the firms changing their approach. Additionally it is very important to decide which marketing strategy would be feasible for a firm for one corner of the globe and which would suit for other corner. For example Nokia manufactures the cellular phone sets for its customers worldwide but it includes different selection of pieces for wide-ranging nations and it creates Nokia successful in this global town. In the same way Sony Ericsson is also offering specific group of sets for the particular country where in fact the sets meet up with the requirements of the neighborhood people.

The Coca-Cola Company within 1886 is a respected beverage company using its customers in over 200 countries and headquarter in Atlanta, Georgia. The brand Coca-Cola is a non-alcoholic soft drink and it has a great acknowledgement all around the globe. Talking about the success of the company, ex - chairman of the Coca- Cola Company, Douglas Ivester mentioned that being global is the primary strength of the business (Annual Report 1998). It is a business with affordable prices with a solid foothold in many countries. There are a few other companies as well for example PepsiCo, Cadbury Schweppes who are making their achievements in the international market segments.

The real challenges comes for a brandname manager when he has to make the consumer aware of the product/service offered in a unique structure, may be with a name, logo or color so the strategy enables the client to effectively identify and choose the brand from a cluttered basket. The brands power is not restricted to the amount of recognizability and the grade of the merchandise offering. Brands deliver more than only a predictable assurance about quality. Strong global brands deliver to the strong psychological need. A brand like Nike talks about thinking in one's limitlessness. Rin speaks about destroying dirt which we see in its most important form as a threat that disrupts the cool orderly world that people live in a strong global brand while dealing with a fundamental real human motivation delivers to the motivation in a unique way. They are driven by distinctive brand ideas. The product is seen in the market place as an expression of brand idea. The product basically translates the brand idea in to a tangible form with features and styles that is delivered to the consumer. Dettol being truly a global brand is motivated by a concept of overall certainty it offers in feeling shielded from the hostile forces of the dusty world. This brand idea the company is pursuing through the globe regardless of the actual fact to which ethnical domain they can be focusing on for. Consumers in all these countries go through the brand idea only through the proper actions of the brand in the market place. These brands send market impulses consistent with the theory that they are a symbol of. Beginning with the tangible attribution of the brand through the product to the designed marketing communication, the brand consistently directs the same sign in every market. A lot more constant is this marketing signal, more clear is the brand image in the united states for the global brands. The study suggest that strong brands and are built over time. A brand trust gets built over a huge number of relationships across a variety of situations. So a strong global brand is like a network of sophisticated internal and market structural conditions that include situations, organizations, behaviors feelings and symbols placed by a strong and powerful drivers with a central idea. A successful online marketing strategy has two options in creating market presence. It must wipe out competition by frequent communication and advertising or use communication to make the customers feel the technique to discriminate and only the brand. A solid global brand creates organizations in consumer head to make them see in a different way by guiding consumers to add distinct functional and emotional benefits and appropriate meanings and values to the brand. As a reply to this work the consumer is eager to pay reduced for these brands only when they represent added value whether as superior quality or a definite emotional advantage. The brand communication should also communicate and hook up to the people. The connectivity of Britannia with health is well thought all over the world. This connection is the logical justification to allow them to overcome the extra spending to obtain the brand. Successful brands live beyond years for this reason connectivity. It isn't only satisfying customers of different countries with assorted cultural track record but also attaches with new generations with their new group of values, expectations and ambitions. For a successful global brand it must click across the vertical class of decades and horizontal mass of global market. In a worldwide market organizations must reach customers in market segments far from their home basic. Strong brand operates as an ambassador when the companies type in new market or offer new products. It also helps in rectifying the organization strategy to define which initiatives fit within the brand strategy. Brand building for service organizations have to change their corporate strategy also. Professional Services Company such as Anderson talking to re-branded as Accenture have recognized that conveying a feeling of trust and distributed mission is really as important as technological competence in being successful multi million buck contracts across the globe. Information and the media have made us all global residents. This presents an organization with the chance to broaden market opportunity by internationalizing product and service marketing to be able to reap the great things about economies of level.

There are various issues at the organizational level that makes a decision about the global branding strategy. You can find two strategic parameters affecting the decision of global branding. They are the relative strength of globalization pressure in that particular industry and the amount to that your company has internationally transferable resources. If globalization pressures are poor and the business's assets aren't transferable including the brand then your company do not need to go for a global brand. It will focus in the domestic market in creating a higher brand value. If globalization stresses are weakened and the company has transferable belongings then your company should look for extending directly into a similar market with a global brand. The house advantage due to a strong brand proposition can be utilized as a platform for building brands in selective marketplaces. By this the company can reap added income and scale economies with valuable international marketing experience. This group of global brand extension goes for considering analogous international marketplaces which are similar to the house market in conditions of consumer desire, geographic proximity, ethnic similarity or even federal government legislation. Bajaj Auto's expansion south Asian market because of their three wheelers can be an example of brand success in analogous market. The storyline of Asian Paints in Indian market has made it to visit for global branding in countries like Nepal, Fiji and Korea using its typical low cost formulations and service delivery propositions to aid the brand called "Asian Paints".

Companies from emerging market segments can also go global and launch global brands. But also for having a global brand you have to take to consideration another group of opportunities and constraints. The low cost of wage and proximity to raw materials also provide a competitive advantage for local companies to look global. If these players can beat the zero skills and money then launching a worldwide brand is a difficult proposition. The success of Infosys and Wipro as brands in the global market is exemplory case of global branding success in high-tech industry. However there are extensive intricate factors that make a difference a global online marketing strategy. These include the type of the merchandise (for example consumer durable products being more suited to standardization than non-durables), top features of a particular market and even organizational background.

The development of standardized marketing strategies may differ considerably - for example, should the strategy be founded upon the common features of a trans-national mass market or after the id of common clusters in several countries? The problem for a multi-national organization is that it operates in several countries and changes its products and practices in each at considerable cost. So by standardizing elements of the marketing mix through an international strategy, the debate is the fact that efficiency can be greatly improved.

Master Foods is also continue with its international market in various countries. Reselling the delicious chocolate brand under 'snickers', Maser Foods is uses the plan of internationalization. You will find more companies in the food industry which are providing their

Usunier (2000) points out that in today's progressively more interdependent world, barriers to trade and international exchanges are constantly diminishing. However, the sizing of culture remains the sole most long lasting feature that is necessary to be included in marketing strategies and in their implementation, especially when they concentrate on international markets. Encouraged by the above mentioned notion, a case study of IKEA Shanghai in China with regards to IKEA Malm¶ in Sweden, shows how IKEA conducts its marketing strategies to charm to customers cultivated in an alternative culture from the united states of its origin and the way the company combines its global online marketing strategy with local culture-based marketing activities. From a small town in the south of Sweden in 1943, IKEA has grown in to the biggest furniture merchant with 253 stores in 37 countries and territories around world. The business's makes an attempt in the Chinese market started from Shanghai 3 in 1998, when its first store in Mainland China was opened. Through the next 9 years,

IKEA had taken its time, getting to know the Chinese language customers. Some prudent Experiments have been proven effective. IKEA's sales in China increased 500% from 2000 to 2005. At the same time, price has also been payed for a lesson how to balance global marketing strategies and local marketing activities. IKEA's business actually began from the development concept, which holds that consumers will prefer products that are available and highly affordable. In its earliest times, IKEA was selling products bought in mass from Stockholm. The products were provided by the neighborhood milk vehicle to the train station and then the buyers. In this manner, the merchandise were easily available to his customers with low prices. Because of its rivals' jealousy and hostility, IKEA had to design its products and search cheaper suppliers in 9

Poland, when the product concept was proved worth trying. The product concept supports that consumers will favour products that offer the most in quality, performance, and progressive features (ibid). Nowadays, to be able not to make an impression its customers as it is compromising quality when charging low prices, the business has been focusing on quality assurance even at low prices. The task remains one of the business's concentrates in 2007 (IKEA Facts and Statistics 2006).

Part-2 "perhaps advertising is the medial side of international marketing with the greatest similarities from country to country throughout the world. Paradoxically, despite its many similarities, it may also be acknowledged with the best quantity of unique problems in international marketing. " Discuss citing as many relevant organisational samples.

Advertisement today is very essential in the campaign of businesses around the world. There will vary forms of adverts and more sorts are being developed everyday. The innovations and inventions in neuro-scientific advertising campaign will be sustained regularly. As it is increasing day by day there are problems which can be paving their way towards advertising regulations. Advertising within the country can be possible for the observers to study it living within the point of view of their own practices, cultures and spiritual norms. But when we go global we need to understand certain requirements of advertising campaign in a global with a global vision. It requires understanding certain requirements of the clients, their taste, culture, traditions and religion. The likings and disliking of the clients can vary greatly from nation to country and there is a need to comprehend the problems which might appear while advertising to the long range of customers with a diversity of likings and disliking. There may be different advertisement regulations with their benefits and drawbacks as well therefore as the problems but some of the problems sometimes attain the uniqueness.

A brand is very important for the advert as the customers are attracted into the brand name more regularly than the details of the article. The brand of a firm may be popular in a country but it can be lost if the same is utilized in an international market where some brand name is comparable to the main one launched internationally. An example of this kind of advertising problem is seen in B. F. Goodrich plan in 1975 contrary to the brand name 'Goodyear'.

The Google INTERNET MARKETING Obstacle, a MERLOT online learning subject offered by http://www. merlot. org/merlot/viewMaterial. htm?id=310448, is a worldwide competition where students use small to medium sized enterprises (SMEs) to make a useful and successful online advertising campaign using Google's key advertising product, AdWords. In your competition, students learn critical online marketing skills, including how to increase targeted and relevant traffic to a client's Website. Pupil teams use marketing ways to refine and improve the effectiveness of the AdWords campaign over the three-week competition period. Online marketing of such type is much common but a distinctive problem has been observed by Yahoo Inc. and then a solution has been presented to counter the challenge. Google allows the clients to utilize Adsense which helps making money online for those who have websites and can add the advertising links with their pages. The profile of the website owners gets increasing the amount of money as soon as the ad links are clicked, webpage is viewed or the search engine is used. Nonetheless it has been witnessed that the net links were seen and clicked by wrong users which made Google think about the challenge and the ways of solving this matter. Sales persons are used by the businesses very commonly and they're offered commissions, incentives and bonuses as well as the monthly fixed salary. The work tasks of advertising sales people vary somewhat, with respect to the kind of sales telephone calls they make. Their careers may also differ predicated on the advertising space they sell, which may include graphic artwork, custom-made indicators, or tv set and radio advertising time. But most brokers follow similar steps in performing business with clients.

Advertising sales people sometimes utilize a client about the same project, but most sales agents-and many clients, too-prefer to develop longstanding business interactions. Because of this, advertising sales agents try to build a good rapport with the clients. They cite no monetary advantages to the work as well. Like many other sales employees, advertising sales agents must work separately, and many prefer this autonomy when deciding and giving an answer to clients' advertising needs. Successful sales agents also benefit from the challenges of the task, such as deciding how to reach regular sales quotas or solving clients' advertising problems. And many sales agents find that the ongoing consumer associations they develop as sales people are more rewarding than the quick connections with clients that other sales employees may have.

Quandrax Personal computers uses the sales folks to make sales calls which ultimately results a deal order. The firm offers free examples to the clients. A distinctive problem during a sales call was discovered by the supervisor who was simply on the sales call visit. Matching to him a customer was quite definitely keen to receive the computers in bulk and requesting the discount however the salesperson was not arranged with him although there is a proper company coverage to permit the discount for the clients who purchase in large.

Sometimes there are a few traditional or religious beliefs affiliations which make the advertisement plan much difficult to establish. For example McDonalds and KFC both are providing fried poultry food and other related items for the clients almost all over the world. But these businesses was required to counter the issues they faced in some Muslims Countries where in fact the people are extremely much reluctant to change their eating habits. Further, some extremist problems were seen on the multinationals. To deal with the local problem to the global organizations, they used the religious slogans prominently located on the key entrance of outlets. Whether it helped them or not is debateable.

There are many controlling specialists which declare the guide for the advertising businesses. A similar document 'North Carolina Talk about Hearing Aid Retailers And Fitters Mother board Advertising Recommendations' defines some guidelines as below:

  • Advertising a service or product to be available for a restricted time (e. g. , "This Week Only" or "3 Times Only") is incorrect and deceptive if the advertisements is run week on week (i. e. , a "continuous sale").
  • Advertising "Free Hearing Evaluations - A $65. 00 Value" is misleading if the seller doesn't have a regular established hearing evaluation fee of $65. 00, independent of hearing help sales
  • Advertising such wording as "Free Batteries, Service, and/or Maintenance forever" takes a definitive statement in the body of the advertisement in regards to what "life" is pertinent (e. g. , life of the consumer, life of the reading aid, etc. ).
  • Advertising that contains any reference to "many years of experience or service" is known as by the Board to be misleading unless the research pertains to the real experience or service of the specific licensee or apprentice presently making the case and not to that of a supplier, corporation, previous business owner(s)/operator(s), or any other collective band of individuals (e. g. , "the XYZ Family" or "our staff").

So, currently the advertising companies need to check out the guidelines which create another group of unique problems for the advertising companies today. Not all advertising problems are the result of a licensee failing woefully to comply with the guideline. Sometimes a paper backup editor, for example, edits the ad copy from what was originally published by the real estate company. These types of problems by others cannot be prevented by the true estate company. As essentially, however, newspaper duplicate editors, website programmers, printers and others who provide advertising services to real real estate licensees are not expected to know the true real estate brokerage advertising guidelines and licensees should never count on others for compliance with the rule.

Concluding the above conversation we can say that marketing today has transformed a lot but still moving its style from the orthodox modes to the new and unique methods. Increasingly more impressive people are joining the field of advertising which is providing new horizons of marketing ways of the firms on earth. As the enhancements come to the panel of marketing there are new problems observed in the advertising organization.

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