examples of customization in global marketing
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Harvard Business Publishing is an affiliate of Harvard Business School. From marketing and customer communication to product creation and beyond, it is now the expectation of most consumers.. A vicious circle can develop. R. J. Reynolds revitalized Camel as a global brand after the German subsidiary came up with a successful and transferable positioning and copy strategy. In 1979, one of Henkel’s worldwide marketing directors wanted to extend the successful Sista line of do-it-yourself sealants from Germany to other European countries where the markets were underdeveloped and disorganized, as had once been the case in Germany. But such personnel transfer programs may run into barriers. 2. The Sista launch was especially challenging because it involved the extension of a product and program already developed for a single market. Persuasion, however, has its limitations. But for country managers who view control of marketing decision making as central to their operational success, the transition will often be harder. In addition, management often has neither the time nor the R&D resources to adapt products to each country. The local manager who has clear autonomy and profit-and-loss responsibility cannot hide behind such excuses. In this section, you will learn about a few examples of companies who have taken mass customization abroad. For Nestlé, global marketing does not so much yield high manufacturing economies as high efficiency in using scarce new ideas. In response, Coca-Cola introduced its ‘think local, act local’ marketing strategy … When they wanted to increase Direct to Consumer sales channel, they come up with ... Nissan. Once managers have decided how global they want their marketing program to be, they must make the transition. Naturally, headquarters is likely to become more involved in marketing decisions in countries where performance is poor. Nestlé publishes quarterly marketing newsletters that report recent product introductions and programming innovations. Such conflict is most likely to arise in companies where the reason for change is not apparent or the country managers have had a lot of autonomy. In addition, scale economies in marketing programming can be achieved through standard commercial executions and copy concepts. They rightly view their subsidiaries and the managers who run them as important competitive strengths. Standardizing products can lower operating costs. Moreover, local managers developed valuable ideas on such programming specifics as sampling and couponing techniques that were used in all other countries, including the United States. Procter & Gamble developed Pampers disposable diapers as a global brand in a product category that intuition would say was culture-bound. Global marketing strategies are actually important parts of a global strategy. How far a decentralized multinational wishes to pursue global marketing will often vary from one country to another. Nestlé locates product directors as well as support groups at headquarters. When the local managers tightly control marketing efforts, multinational managers face the three critical issues. Since the market potential in each country was small, they said, they did not have the time or resources to launch Sista. As one German headquarters executive commented, “Those managers in the field who can’t adapt to a more global approach will have to leave and run local breweries.”, In the postwar years, as Coca-Cola strove mightily to consolidate its territorial gains, its efforts were received with mixed feelings. 3. A bottom-up rather than top-down approach will foster greater commitment and produce superior program execution at the country level. Yet management must recognize that even with a one- or two-year transition period, some turnover among field personnel is inevitable. Since the country managers in the prime-mover markets have to risk their resources to launch the new products, they’re likely to tailor the product and marketing programs to their own markets rather than to global markets. Copyright © 2020 Harvard Business School Publishing. Once management makes the point, a more participative approach is feasible. Second, powerful local managers are often unwilling to give up their best people to other country assignments. 94% of customers and marketers consider personalization important today, but how do you do it effectively? The product, brand name, positioning, and package design were standardized globally. For instance, some local managers may try bargaining with headquarters, trading the speed with which they will accept and implement the standard programs for additional budget assistance. The country managers, however, objected. Thus the country manager’s control over the content of advertising is not compromised, and the company achieves a reasonably consistent presentation of its names and logos worldwide. Multinationals that direct local managers’ marketing programs usually do so out of a sense of urgency. When you sign up with Marketing Automation Insider, they ask you some very simple questions to help refine the content that you’ll see.
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