Once the decision has been made to enter an overseas market a business must consider the extent to which it will adapt its offerings to local conditions.
It is possible to market the product in almost the same way in every country (as Gillette does with its razors), which is known as a global strategy.
If a business pursues a global strategy this means it is adopting essentially the same marketing mix wherever it competes.
One advantage of a global approach is that it offers marketing economies of scale, for example, the business can develop one advertising campaign and one approach to packaging worldwide.
However, this type of strategy does not respond to the requirements of different national markets and so the business may lose sales to competitors who focus more on local needs.
In markets such as food and drink and the media, a business may need to adapt significantly to local requirements. On the other hand, a more local approach may meet customer needs more precisely but may be more expensive and more complex to manage.
In reality, most companies will choose a balance between the global and local approach. Unilever, for example, has built several super brands such as Dove. These are global brands that sell in many different markets. They have the same name and loo everywhere. However, some adjustments are made in the way the product is promoted to reflect local conditions.
Unilever calls itself a ‘multi-local multinational’. This is reflected in its structure – it has brand managers who look after a brand globally and local country managers who look after all related issues in their areas. This approach is also called ‘think global, act local’ strategy.
Companies try to find economies of scale where they can by doing things the same but, where necessary, adjusting to the local market. Mcdonals’s has the same basic brand image and approach everywhere but sells wine in France, does not sell pork in Muslim countries and adjusts the menu in different areas.
Q6. What are the factors to consider when entering overseas markets?
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