Chapter Twelve Global Products mkt568 Global Marketing Management

Chapter Twelve Global Products

• MKT568

• Global Marketing Management

• Dr. Fred Miller

Sample Essay Question

Marketing Strategy Options

• Multidomestic

• strong cultural influences, localize and adapt

• Global

• similar buyer preferences, global customers/competitors

• Globalized localization

• integrate sourcing, production and marketing
• seek balanced growth
• coordination of marketing across countries
• globalize as much as possible, localize when necessary

Multidomestic versus Global Markets: Key Differences

A Multidomestic Industry

The Value of Global Brands

The Value of Global Brands

Globalized Localization: Coca Cola

Globalized Localization: McDonald’s

Standardization and its Problems

• Standardization

• advantages: cost, customer preference, quality, global customer/segments
• disadvantages: off-target, lack of uniqueness, protectionism, local competitors

• Globalization limits and pitfalls

• limits:industry, resource, marketing mixes
• pitfalls: research, over-standardization, poor follow-up, narrow vision, rigid implementation

• Localization vs Adaptation

The Tradeoff Between Standardization and Adaptation

Strong Local Brands

Global Brand Management

• Developing new global products

• idea generation
• preliminary screening
• concept research – focus groups, concept testing, target research
• sales forecast
• test marketing

• Globalizing successful brands

• diffusion factors – advantage, compatability, perceived complexity, trialability, observability
• globalization potential-sensible, favorable, available, complement, regional
• changeover tactics - fade, axing, forewarning

Low Globalization Potential

The “Zoo” of Product Branding

Global Brand Management

• Brand Management, Top 100 Global Brands

• Brand equity, global brands, brand portfolio/mix

• Counterfeit products

• Counterfeit vs gray trade
• Actions against counterfeit goods

Global Value of the Nescafe Brand

Localizing the Nescafe Brand

Evolution of a European Brand

A Tale of Two Beers

Anheuser Busch in Europe

Czech Budvar in USA

Significance of Private Brands

Flanker Brand Example

Cola Wars Video

• In which countries, with what strategy and with what success has Mecca Cola chosen to challenge Coca Cola?

• In which countries, with what strategy and with what success has Qibla Cola chosen to challenge Coca Cola?

• How has Coca Cola responded to these challenges?

Chapter Twelve Global Products

• MKT568

• Global Marketing Management

• Dr. Fred Miller

Target Market Definition, Size and Purchasing Power

• Define your target market by age and income classifications in the SPSS dataset.

• Use this definition to analyze statistical data on this market (review previous slides)

• To calculate size of target market in number of people,

• Determine the number of people in your chosen age range (Data tables for Population Pyramids)
• Multiply the result by the percentage of people in your chosen income range (SPSS Crosstabs)

• To calculate purchasing power, multiply the product of the previous step by your country’s per capita income (from Part 1 of your report, World Bank)

Pro Forma Income Statement

Pro Forma Income Statement

Pro Forma Income Statement

Pro Forma Income Statement

Pro Forma Income Statement

Pro Forma Income Statement