learning objectives after reading this chapter, you...

GLOBAL MARKETING

CHAPTER

26LEARNING OBJECTIVES

After reading this chapter, you should be able to:LO1 Explain the rationale and implications of globalisationLO2 Describe firm orientation for global marketsLO3 Formulate global marketing decisionsLO4 Evaluate growth and strategies of global firms from emerging economiesLO5 Explain organising for global markets

Making of an Indian Global Company—The case of Dr. Reddy’s Laboratories

Dr. Reddy’s is today India’s first major global pharmaceutical company which has grown on the strength of acquisition, research and development, proprietary knowledge, market devel-opment and global partnerships. It is just in a span of 3 decades that Dr. Reddy’s is today one of the foremost players in generics business. It aspires today for leadership in key markets in generics business. The strategy that company would be adopting is that of improving its depth in key market through portfolio expansion and excellence in supply chain. It also aspires to emerge as a partner of choice by leveraging its intellectual property, adoption of latest tech-nology and achieving cost leadership. The company established a drug discovery program in 1893. As early as in 1987 it obtained its first US FDA approval for producing Ibuprofen API and started its formulations operations. It became the first Pharma company to export Norfloxacin and Ciprofloxacin to Europe and far East in 1999. It was in 1995 that the company filed its first patent in the US. In 1999 the company acquired American Remedies business in India. 2005 saw Dr. Reddy’s acquiring Roche’s API business in Mexico and in 2008 it acquired BASF formulation unit in Louisiana USA and DowPharma’s small molecule business at Mirfield and Cambridge, UK. In 2013, the company acquired Netherlands based Octoplus—NV, a specialty Pharmaceu-tical company. In terms of partnership the company has developed relationship with Merck, Scerono, for development and commercialisation of bio similar, GSKs for emerging markets, Merck, Proscar® and Zocor®.

I n P r a c t i c e

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600 Marketing Management

INTRODUCTION

All along in this book there is mention of a turbulence in the marketplace. Today, this turbulence is being witnessed across the world. Fuelled by lowering of entry barriers, advancement of information and communication technology (ICT), and increasing homogenisation of consumption values, firms are realising that the distinction between domestic and foreign markets is getting blurred and hence they have to plan their operations for global markets. This is true for all firms, irrespective of their size and hence, this chapter on Global Marketing.

A glance over Table 26.1 would show that 4 of the top 10 India’s global companies are from the Tata Group. In fact, the group has emerged as India’s most global industrial group in the last one decade. The group has been aggressive in terms of acquisitions, partnering and innovations. For example, Tata Steel which is today ranked 2nd in most global Indian companies, emerged as a global player on the strength of its acquisition of Corus, which is now called Tata Steel Europe. Also today it is among the top 10 global steel companies in the world with annual crude steel capacity of 28 million tons per annum. It is today world’s most diversified steel producer with operations in 26 countries and commercial presence in over 50 countries. Tata Global Beverages emerged on the global scene again on the basis of its acquisition of James Finlay, Tetley and other brands including Himalayan brand in mineral water. It has partnered with Starbucks, a leading US coffee chain. Same holds good for Tata Motors and Tata Communications. Another perspective that the data in Table 26.1 reveals is that global Indian companies are primarily in commodity and services sector.

Today the company’s turnover is `117 billion. The company is poised to emerge as a leader in the Pharmaceutical industry.

Similar to Dr. Reddy’s story is that of several other companies from emerging markets which are today the world leaders. The strategies used are a combination of affordable innovations, acquisitions, development of proprietary products, collaborations and partnerships. Some of the companies from emerging economies which are well-known are Haier, Lenovo, Huawei tech-nologies from China, Tata group companies, Bharat Forge, Jindal Steel, Infosys from India and SABMiller from South Africa.

These companies and the economic power of emerging economies indicate a global shift of power, where it is not just the US and the OECD countries that will determine the future of the world economy. Consumption and production are today as much a characteristic of emerging markets as that of US and other developed country markets. The 21st century is marked by a shift in the global power equations. The new global power structure is not bipolar or unipolar rather it is multipolar in which six economies—US, China, India, Brazil, Russia and South Africa (BRICS)—are playing the leading role in world economy. Example of this is the establishment of BRICS bank which will focus on needs of these economies—China, India and bloc of South Africa, Brazil and Russia. In a way 21st century is marked by a large number of markets each vy-ing for the top slot. Companies would now have to develop their strategies for the world market which will also have to take into consideration their presence in web world. In a way therefore, entry strategies would go beyond the known routes of licensing, exporting or acquisitions or set-ting up of subsidiaries for manufacturing and marketing purposes. It will also necessarily include internet and mobile marketing strategies.

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Global Marketing 601

Table 26.1 Most Global Indian Companies

Rank Company Sector Revenues from foreign operations

(Rupees Billion)

% of Revenue from foreign operations to

total revenues

1. ONGC Oil and hydrocarbon 221 97%

2. Tata Steel Steel 977 73.5%

3. Tata Global Beverages Beverages 46 69.7%

4. Motherson SUMI Systems Auto Component 105 70.5%

5. HCL Technologies Information Technology 199 96%

6. Tata communications 107 75%

7. Hindalco Companies Ltd. Aluminum 618 76.5%

8. Suzlon Energy Energy & Power 133 63%

9. Tata Motors Auto Mobile 1115 67%

10. Dr. Reddy’s Laboratories Pharmaceuticals 80 82.5%

Source: Based on www.rediff.com, July 17, 2013.

RATIONALE AND IMPLICATIONS OF GLOBALISATION

Rationale for GlobalisationThe last decade of 20th century witnessed acceleration of globalisation. This was mainly fuelled by developments in communication technologies and lowering of entry barriers across the world. The direct implications of this are homogenisation of consumption and increased inter firm rivalry at the

global level. Competition is no more restricted to one form or type of firms. A customer in India, for example ordered wares from Amazon.com even before it entered Indian market in 2014. Likewise s/he would buy global brands even if they did not have operations in the country. The gap between developed and developing world got reduced primarily due to internet, mobile phones especially smartphones and tablets and satellite television and direct to home (DTH) telecast. Let us review the rationale of and implications for firms of this significant change.

Political Rationale Since 1990s world has witnessed significant political developments which have had an impact on markets and consumer lifestyles. One major change was that of lowering of entry barriers. Countries opened up their markets to global firms and encouraged their home firms to raise their standards and compete with global firms. The focus of economic policies was to attract for-eign direct investments and brands. Retail policies in many countries changed to bring global brands to their markets.

Another shift visible was with regard to technical standards. Increasingly countries adopted compat-ible technical standards. This was most widely visible in electronics and mobile phones.

Likewise is the case of internationally standardised freight containers. This standard has enabled all the components of a transport system—railways, air and sea transport, highways, and packages to

LO1

Explain the rationale and implications of

globalisation

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interface efficiently. The standardised documents accompanying the cargo identify sensitive or danger-ous cargoes and makes international trade cheaper, faster, and safer.

Similarly, ISO, standardisation of the format and size of banking cards, credit cards, and telephone cards, same symbols for automobile controls in cars all over the world are some other examples of internationally accepted standards.

This push for compatible standards will continue to grow in all sectors of industrial activity because of its ability to reduce or eliminate the ambiguity in business transactions.

The need for common marketing regulations is also today driving the change. More countries are accepting this need and hence a push for regionalisation of trade. NAFTA and EC are two such examples.

Economic Factors The most significant economic change in the last one decade besides lowering of entry barriers was the softening of duties and taxes on imported goods. This reduced the final price to the consumer and helped in creating demand for global brands across the world. It was not just India where this happened. It happened in almost all Asian and South American countries.

Low cost centres in Asia also attracted investment from global firms who now set up their produc-tion and back office operations in these countries. In a way it was the era of capital, technology and jobs migrating from US and Europe to these countries. This migration of resources created employment opportunities in Asia especially China, India and Vietnam. Employments led to generation of incomes which in turn fuelled demand for products and services. For example, HSBC set up a back office opera-tions in Sri Lanka and Mumbai. So did Goldman Sachs and others. Likewise manufacturing firms set up their production facilities in these countries and used them for exporting their products to the world market. The third party manufacturing now gained prominence. Also outsourcing grew exponentially, as a result of which today there is not one single product which can claim to be made in totality in one single country. This today has raised the issue of whether ‘made in’ label has any significance.

In addition to the above there has been tectonic demographic shift.Today, countries like China and India have a distinctive advantage primarily because of the size

of their population. In addition to this, it is a fact that India is the youngest nation in the world. This demographic change has resulted in economic power shifting from the North to the South and hence firms found it much cheaper to produce and market in these markets itself. Today a global firm would have multiple production centres in BRICS economies because they are large consumption centres. No wonder then brands that had so far not started their operations in India have done so and are keen to enter this market.

Technological Changes A major factor that has contributed to a push towards globalisation is the technological change that has revolutionised communication. Satellites have made this possible. It is because of satellite communication that there is no time gap now between an event and its news. The Gulf War of 1991, the disintegration of the Soviet Union, the signing of GATT or NAFTA, the Sept 11, 2001 (9/11) attack on the World Trade Centre in New York, and subsequent US action in Afghanistan the World Cup, sports, beauty contests were seen live across the world. News channels like CNN, ABC, and BBC have now brought these events directly into the life of individuals round the world. Asia saw the emergence of Star TV, which offered to its viewers 24 hours of news, sports, music, and entertain-ment programmes through five channels. Star is a Hong Kong based telecommunication firm which telecasts its programmes through its own satellite.

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Satellite communication made people, or rather the world customer, aware not only of political and economic developments but even of lifestyle and consumption patterns in different parts of the world. The customer in Asia and elsewhere yearned for an international lifestyle. The customer in Asia now wants the latest in fashion and is aware of international brands. Today, product news travels much faster than it did in the 1980s and hence there is pressure towards creating global brands or products for the world market.

Since communication has improved significantly, product technologies and ideas now transcend national borders much more quickly. Today, we are witnessing an era of technology standardisation, thus diffusing differentiation between brands. In the developed countries of Europe and North America, brands have become commodities. The customer is no longer able to differentiate between brands or among product categories. All this makes firms look for new markets. This also enables firms to transfer technology much more effectively.

Technological developments have not just been restricted to television. Computers and telecom-munications have also had their share of developments. Electronic mail and facsimile transmissions (FAX), answering machines, cellular telephones, and pagers have all ensured that nobody is missed or misses a call. Business deals are concluded much faster today than they were a decade ago, and these developments have reduced the need for frequent business travel.

But, nonetheless, more and more people are travelling internationally to become aware of other markets. Aircraft manufacturers use computers for accurate takeoffs or landings, even in the worst weather conditions, making them safer and more comfortable to travel in. Tourism is the big gainer in this exercise. International travel and tourism means demand for international brands or global brands that are known for a specific quality or product benefit.

Globalisation of business then is the logical outcome of all these technological changes occurring in different parts of the world.

Social Changes The new customer has now arrived. He is more aware, literate, and price sensi-tive or, rather, with a high concern for value for his or her money. Asian economies are witnessing the emergence of middle class and higher income families. This customer wants the latest and the best available in the world market. As we mentioned earlier, the lifestyle of an average customer in Asia, Europe, or North America is truly becoming global, and so is born a world customer who lives in India, China, Malaysia, Hong Kong, Indonesia, Saudi Arabia, Turkey, Greece, Mexico, USA, Canada, UK or anywhere else. To satisfy the needs of this world customer one needs a global product, a brand, and hence, global marketing.

Implications of GlobalisationThe critics of globalisation believe that it will lead to the hegemony of the US and Western powers in the world market. They believe that the new forces of imperialism are the global companies, most of whom have their headquarters in the western hemisphere. Exploitation of labour, denial of life-saving drugs to the poor, widening of the gap between the rich and the poor in the name of environment and intellectual property rights, and the dominance of the market by the top three companies in any product group is the line of argument taken by these critics. The proponents of globalisation do not believe so. They believe that globalisation of markets is the most acceptable way of improving the lifestyles of consumers

Satellite communication has made people aware not only of the political and economic

developments but also of lifestyle and consumption

patterns in different parts of the world.

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around the world. Without going into the merits of either of the arguments one has to keep in mind that globalisation is not a one way street. The last five years have witnessed Indian companies taking steps to significantly improve their cost structures to bring them in line with the international firms, remove inefficient/obsolete operations in their organisations, and scale them to the global demand. Many of the Indian companies like Bharat Forge (which is one of the major producers of forging in the world and the largest producer of Sharp picture tubes), Bajaj Auto, Ranbaxy, Dr Reddy’s Labs, and others have, over the last five years, had only one agenda—to win in the world market. This has certainly benefited Indian customers, too, as they get better quality and more dependable products at a price which is lower than what they have paid pre-1995. Thus, the most significant implications of globalisation are:

form of lower prices.(b) Improved quality and, hence, the customer is assured of quality products and services (we have

witnessed strong TQM and ISO 9000 movement in the country), as also large number of IT companies like TCS, Infosys, and Wipro working towards acquiring Capability Maturity Model

(c) Availability of new products to the Indian consumer and the world consumer simultaneously. It is a fact today that most companies launch their products and services worldwide at the same time and possibly the same day. Towards the end of 2001, Microsoft launched XP all over the world, and India was no exception.

Another implication of globalisation is the increasing concern among firms and consumers of maintaining the ecological balance. Hence, today, one can see companies marketing environmentally safe products and services. Orchids Hotel in Mumbai was the first ‘green’, that is eco-friendly, hotel in the country. Taj introduced a large number of eco-friendly products in its room service and some of its hotels acquired the ‘eco-friendly’ label. Automobile companies are today marketing vehicles that subscribe to the mandatory Euro 2/Bharat II anti-pollution norms. All this was unheard of in the pre-1995 era.

In short, the society, the consumer, and the industry—all have benefited from globalisation; hence, it is a win-win strategy.

FIRM ORIENTATION

From what we have discussed, it follows that a firm needs to have an ap-propriate orientation for the world market. While looking for orientation it is important to understand the EPRG framework.

Ethnocentric Orientation (E)Ethnocentric Orientation (E) refers to home country orientation. Here, the firm’s reference point is the home market. Generally, when a firm is ethnocentric, it looks for foreign markets to sell its current product or, at best, surpluses. There is hardly any or very minimal product adaptation for foreign markets. Some mi-nor changes may be made in the product to suit the host or importing country’s legal requirements—as in packaging, where the firm may have to comply with

LO2

Describe firm orientation for global

markets

When a firm is ethnocentric,it aims at selling the surplus of its own product in the foreign market with minimal product

adaptation.

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statutory declarations. It is obvious that, this orientation leads to exporting the product. Hence, the most common market entry strategy is export. The firm’s objective is to seek overseas customers for its existing product line. The firm may do so either through bidding for an export order, or sell to an export house or to an overseas buyer or his representative. At times, the overseas buyer may give his requirements, as in the case of readymade garments, to the firm, which then makes it and delivers it to the customer. For gaining competitive advantage in exports, a firm will have to ensure that it meets the buyer’s specifications in terms of features, quality, and delivery. The issue of pricing and payment terms is also important. Normally a firm may have to work on a marginal cost method to price its products and get paid through a confirmed irrevocable letter of credit. Should there be a problem in product clearance or selling in the importing country, the firm may, at times, have to either get it back, destroy it, or accept any other cuts in its price. An ethnocentric firm always looks for help from the home country government.

Polycentric Orientation (P)Polycentric (P) is when a firm exports to not just one market but to several markets. It looks for customers in different foreign markets but is still interested in selling its existing product in the existing form. Its reference point is still its home country. The difference between an ethnocentric and polycentric firm is the number of foreign markets served and the fact that the latter is more actively involved in soliciting overseas buyers. Exporting is a more serious business here than in an ethnocentric firm, where it is done on an ad hoc basis. A polycentric firm may even expand its capacity or put up a new line for foreign markets. Manufacturing is still done only in the home country.

Regiocentricism Orientation (R)Regiocentricism (R) occurs when a firm has focused on a specific region, for example, Europe, North America, or Asia Pacific. Here, the firm researches these markets, understands customers and competition in the region, and evolves competitive strategies. It may examine several market entry strategies but the common ones are joint ventures or subsidiary operations in the target region. For example, a firm targeting Europe may set up a manufacturing base in one of the European countries to bypass EU’s requirements or quota restrictions. It may homogenise the product for the EU. Homogenisation may involve making the product environment friendly, or even develop a special feature in the product to enable it to suit local weather or other conditions. For example, this may mean giving a fur lining to leather boots and having shoe lowers that are rugged, so that the customer is able to walk comfortably on the streets in the cold European winter. This will make the leather shoe firm’s products more acceptable. For an automobile firm this homogenisation may involve providing safety belts, air cushions for protecting the driver in a collusion, or even converting the vehicle from left hand to right hand drive, and from standard to automatic transmission. It is here that international marketing takes shape.

The difference between the ethnocentric and

polycentric approach lies in the number of foreign markets being served and the degree of involvement in soliciting

overseas buyers.

Regiocentrism calls for homogenisation of the

product according to the requirements of a specific

region.

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Geocentric Orientation (G)Geocentric (G) firms are those that consider the world as their home market. These firms evolve strategies to globally maximise their resources. They are not interested in the market shares of just one market but in keenly pursuing goals of global market leadership. Hence, for them, market entry strategy is a choice from among a myriad possibilities. Some of them, besides being exports, joint ventures, and overseas subsidiaries, are strategic alliances, acquisitions, merg-ers, brand franchising, manufacturing in low cost centres, and so on. These are global firms. Erstwhile multinational firms have now realised that they cannot survive in the world market if they do not change their orientation and objectives. Until recently, multinational firms had looked at Asian, African, Latin American, and other markets only from the point of view of selling their products and brands. They did not consider these economies worthy of investment. Their prime goal had been to earn maximum profit with least investment in these economies. The boards of most transnationals continued to be dominated by home country nationals. A global firm has a global board, giving adequate representation to local aspirations. It is the local or country managers who provide the local perspective to a firm’s strategy thereby, to an extent, localising the global strategy. To understand the difference between a multinational and a global firm, let us take the example of Coke. In 1977, Coke left India when asked to dilute its equity. It felt that it could not risk losing the Cola formula that had made Coke ‘the real thing’. Besides, at that time it had not accepted the idea of joint ventureship or a minority role for the firm anywhere in the world. It had 100% owned subsidiaries in different parts of the world and India was no exception. Further, it had not done anything to either develop the soft drinks market or industry and most Coke bottlers operated slow speed bottling plants. But in the 1990s, Coke was dif-ferent. It considered local markets, local government aspirations, and competition when deciding its market entry and marketing strategy. So, in 1993, Coke re-entered India not as a fully-owned subsidi-ary of its Atlanta parent, but through a strategic alliance with Parle. The same is true of IBM, which re-entered India in 1992 in joint collaboration with the Tatas. So, today’s global firms, some of which are yesterday’s multinationals, have the dream of responding to the world customer through myriad strategies.

A global firm sources its inputs from different countries with the prime concern of getting them at the lowest cost. It processes them, adds value, or manufactures finished goods in countries where it can derive the maximum economies of scale, so that it can pursue a low cost differentiated strategy in the world market. As we shall see in the subsequent sections, this strategy is the most viable one as markets around the world become price sensitive and competitive.

Thus, it is a geocentric orientation that can make a firm succeed in today’s and tomorrow’s market. Indian firms will have to fast change their current ethnocentric orientation as otherwise they will be out of business. For one, in tomorrow’s market there will be nothing like a ‘home market’ for any firm, and the Indian economy cannot ignore this fact. It has to be a mainstream player in the global economy.

Principal Driving Force in Global MarketingCustomers and economies today are reaching out to cost reducing global firms. Understanding the global customer and competition is the first step in challenging a global competitor. ‘While the pattern of cross subsidisation and retaliation describes the battle, world brand dominance is what the global

Geocentric firms consider world as their home market, and they evolve strategies to maximise their resources in a

global manner.

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(marketing) war is all about.’1 Several Japanese, South Korean, US, and European companies have realised this and are actively pursuing this strategy. For they know, that their only salvation now lies in creating and competitively retaining a satisfied global customer. They can ill afford to ignore world markets. They also know that the only way to fight price wars at a global level is to have the presence of a global brand in the marketplace. Otherwise, their products will not be in the shopping plaza but only in the ‘dollar street’.

KEY DECISIONS IN GLOBAL MARKETING

It is important to note first the key parameters in global marketing before we come to the decision areas and strategy.

ParametersSeveral dimensions go into decision making. Here we shall consider some of the pertinent ones.

Corporate Functions One of the first areas that can be globalised is corporate functions, or in other words, where standardisation is easier. Among all the corporate functions, marketing is the most complex and difficult area for standardisation. This is because cultural differences limit the scope of standardisation of the marketing mix in different countries. Manufacturing, finance, and purchase are more easily standardised. Firms can adopt standard manufacturing technology, practices, policies, and procedures in different parts of the world. Hence, it is not uncommon to come across headquarters fully controlling functions other than marketing. Further, post 2000 corporate functions that can be digitised and broken into components can be outsourced and hence globalised. For example, customer service has been outsourced in most global corporations. These service centres operate in different parts of Asia especially India.

Products In selecting products for the world markets, the marketer should know that the ones that enjoy high economies of scale and are not culture bound, can be globalised much more quickly. Though local cultures are under attack from external influences resulting in a more homogeneous global culture, there are still some core beliefs which customers in different countries are not willing to compromise. For example, the US fast food chains, Burger King and McDonalds, had difficulty in entering the Indian market. For Indians, mainly the Hindu majority, beef is not acceptable as it goes against their religious belief. This is true for the educated and elite Hindu customer as well as his or her less educated low income counterpart. As mentioned earlier, McDonald’s and other fast food chain outlets like Domino’s Pizza or Pizza Hut do not use beef or margarine that uses animal tallow. In India, they use vegetable oil for making their products.

In examining cultural and scale barriers, the marketer may be able to rank markets from low to high. A country or market’s place on this scale can help the marketer decide whether to pursue a standardi-sation or a differentiation strategy. While Levitt talked of the very rigid structure of strategic choice ranging between standardisation and differentiation, the contemporary global markets, especially large markets like India and China, bring to the fore another perspective in product strategy, Customisation to suit the local lifestyle and market conditions has helped a large number of foreign firms expand their op-erations in these markets. Levis, known worldwide for making denim jeans and accessories, brought out

LO3

Formulate global marketing decisions

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exquisitely designed women apparel—the denim kurta and the fashionably designed denim jeans—for its consumers. Automobile companies like Ford and Hyundai studied the weather and road conditions in India to design the air-conditioning system and shock absorbers for their vehicles. Hindustan Lever developed low price detergent powders like Sunlight and Wheel and took them to the world market, especially to the other poorer markets of the world. Thus, today, product design for the world market involves adapting the features and, may be, adding new ones to suit the local market conditions.

Another factor to be considered is the brand and headquarter country’s image in different markets. Once again, this varies not only across markets but even over a time period. Nothing illustrates this fact better than Japanese products. In the 1960s and early 70s, Japanese products were the benchmark for inferior or low quality products. But today the pendulum has swung to the other end in favour of Japanese products. Today, they are the final word in quality and reliability. Japanese cars, telecommunication and other similar products have beaten American products so much so, that an average American too does not perceive these (US) products as reliable and dependable. Image change is a difficult, time consuming, and expensive proposition. Today, the same change is visible for India. Indian IT firms are considered to be truly world class. Several engineering and pharmaceutical companies are recognised for their product excellence and world class processes. Indian fashion and food today has found place in the world’s leading stores and food plazas respectively. All this is changing perceptions about India.

Marketing Communication Another dimension in decision making is that of marketing communication. Global firms know that communication is highly culture specific. A word or a symbol may have different meanings in dif-ferent cultures. Also, some visuals in TV commercials may offend local cultures. Pepsi adapted its TV commercial to the Indian market to include Indian idols and situations.

One of the TV commercials of Pepsi brought the two mega stars of India, Amitabh Bachchan and Sachin Tendulkar, together in a kite flying contest. Kite

flying is one of the few events that is recognised nationally. Earlier, some of the premium brands like Longines brand of watches, Microsoft, and Omega watches have used more commonly recognisable and respected Indian individuals as brand ambassadors. Increasingly, companies are realising that market communication has to be customised to the Indian context. In doing so, they often face a challenge as the Indian market is highly pluralistic and the diversity across the country is a very strong reality. This diversity is reflected in the language, cultural values, and religious and educational profile of Indian buyers, thus making it difficult for the marketer to identify the common thread among all factors. Also, the task of identifying a universally acceptable brand ambassador is difficult. In such a situation, the marketer’s effort is to identify the common values that will impact consumption in all regions and use local language to communicate the idea.

Thus, today, communication strategy cannot be seen from the two extreme views of standardisation and differentiation. This is particularly true for a large market like India.

So, while in marketing communication the theme can be standardised for the world market, imple-mentation both in creative execution and media will have to be localised.

Distribution Distribution differs across countries both in terms of availability of channels and infrastructure like transportation, warehousing, and telecommunications. While markets in North

In marketing communication, the theme can be

standardised for the world market, while

implementation, both in creative execution media will

have to be localised.

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America (mainly the US and Canada) or the western parts of Europe are similar in the above dimensions of distribution planning, the same is not true for other countries. Hence the marketer will have to decide whether to adopt a standardised or a differentiated strategy in distributing a product. In the distribution area, companies today have to consider opportunities created by the Internet. Direct marketing and e-commerce are some of the most probable distribution routes available to any marketer in the global market. The Internet today has made it possible even for small companies to market their products and services worldwide. The biggest contribution of the Internet is that it makes the sise and financial capabilities redundant in marketing products and services in the world market.

Countries For a global firm, it is not necessary that its affiliates are equally effective in all country markets. If this were to happen, it will have its implication on the firm’s structure in terms of decision making authority. A global firm is more likely to decentralise decision making to markets where its affiliates are effective rather than where they are not. For example, Maruti Udyog has shown to Suzuki that they are effective and can manufacture cars and vans to match Suzuki’s tough quality standards. Today, a satisfied Suzuki has given greater decision making power to Maruti than to any of its other affiliates. So much so that Maruti is allowed to be marketed outside India in Europe and Asia.

Another factor that the global firm has to consider is, that large markets with strong local managements are less likely to accept global programmes. Yet, these markets represent the highest corporate investments. A global strategy will have to consider the needs of larger markets than of smaller markets. British American Tobacco (BAT) has accepted deviations in corporate strategy from its Indian affiliate, ITC, mainly because India is too big a market for BAT to lose.

A global firm will also have to take into account national priorities of its major country markets and their governments. To this extent, global strategy will need to be localised.

Decision Making for Global MarketingOne decision that the marketer has to take relates to entry strategies in different markets. Today, a company has a choice ranging from exporting to setting up a 100% ownership company in different parts of the world. In addition to this commonly known approach to entry into the world market, more recently, brand acquisitions as well as company acquisitions and mergers are becoming the order of the day. Tata Tea acquired the Tetley brand of tea towards the end of 2000, thereby, giving it a strong position in the global tea industry. As shown in Exhibit 26.1, Tetley is Tata Tea’s engine for globalisation. Likewise, earlier, Coca-Cola acquired Parle’s brands Thums Up, Gold Spot, Limca, Citra, and Maaza Mango. These gave Coke an entry in the Indian market. It provided a network of franchisees and distribution outlets, which Coke has used to fight Pepsi in the Indian market. Similarly, Ranbaxy acquired Eli Lilly in the US to build its global operations. Bharat Forge, likewise, acquired the customer list of one of the European forging manufacturers. This gave Bharat Forge the much required strength to penetrate European markets. Therefore, today, brand acquisition, corporate mergers and acquisition, and even buying the buyers list from weaker competitors are some of the more commonly used market entry strategies.

A global firm is more likely to decentralise decision making to markets where its affiliates

are effective rather than where they are not.

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Towards the end of 2000, Tata Tea made history by acquiring controlling interest in UK’s Tetley group. The Tatas paid £270 million or approximately ̀ 1,900 crore to acquire this well known international brand in the global tea industry. This strategy of acquir-ing an international brand was unheard of in the global tea industry where brand building exercises are lengthy and indigenous. Tata Tea saw its future in the global market and the Tetley acquisition was perceived as transforming Tata Tea from a domestic packaged tea manufacturer to a global player by making itself available in over 35 markets of the world where Tetley was present. Tetley provided the needed leverage to Tata Tea in the global tea business. The company projects that two-thirds of its future revenue would come from world markets.

The company also feels that the global brand image of Tetley will help it expand its market share in In-dia to 30–35%. Once the company is able to achieve this critical mass, it proposes to use Tetley as an umbrella brand in India. The company undertook the task of refurbishing and repackaging its brands in January 2002 and introduced products at various price points.

The acquisition of Tetley also meant Tata Tea strengthening its quality, for Tetley was recognised as the premium leaf brand portfolio. Tetley was also used as a vehicle to carry Tata Tea’s brands in the premium segment of the Indian market.

Thus, the purchase of Tetley made Tata Tea an MNC in the FMCG sector. It helped it to gain market share in the domestic as well as world markets.

Exhibit 26.1 Brand Acquisition for Global Dominance: The Case of Tata Tea

Another major decision in global marketing is that of standardisation as opposed to differentiation and localisation of the marketing mix.

Standardisation Standardised marketing mix involves developing a stand-ard product and marketing it across the national border with the same commu-nication, pricing, and distribution strategy. With the advent and standardisation of technology and more specifically that of communications, customer needs are globally getting homogenised.2 This process of homogenisation of needs is getting accelerated, as trade barriers are breaking one after another leading to globalisation of markets. Worldwide communication has raised customers’ expectations and demands for better living standards, work life, and entertain-

ment. This cuts across cultures and religions.3 Nothing confirms this better than the success of brands like Coke, Pepsi, Levis, Benetton readymade garments, Sony and Panasonic electronic items, and even Hollywood films and soap operas made in the US and different parts of the world, that have diverse cultures and religions. These commonalities in customer preferences lead conclusively to the stand-ardisation route in corporate strategy.

Standardisation helps the firm not only reduce its costs but also to ensure superior quality and consistent brand image across the world market. It helps the firm achieve economies of scale which is not possible in any other approach.4 Japanese firms have relentlessly pursued this strategy and gained substantial scale economies, often at the expense of their rivals. Global firms compete in different na-tional markets through a standardisation strategy and offer appropriate volume—the best combination of price, quality, reliability, and delivery of products.

However, there are pitfalls in this decision. A study shows that the success of a global firm is based on how global decisions are conceptualised, refined, internally communicated, and implemented across the world market. It concludes that firms which lose out in the global marketing warfare are the ones that insufficiently used marketing research, had a tendency to over standardise, did poor follow up, and had a narrow global perspective.5

Standardised marketing mix involves developing a standard product and marketing it across the

national border with the same communication, pricing and

distribution strategy.

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Differentiation Opposed to standardisation is the differentiation strategy. This involves responding to differences in customer preferences arising out of cultural, social, and religious barriers that divide nations. This strategy does help in building up sales volumes, but the cost is prohibitive when done at a global level. Imagine Levis, Benetton, Coke, McDonald’s, Burger King, and Tacobell having to differentiate their marketing mix to suit different cultural preferences. They will not be able to derive economies of scale and hence their cost of opera-tions in a market will be much higher. This will push up prices for consumers or else they will be out of business. Further, these global firms will never be able to ensure identical brand image across the world market. This goes against the thesis of globalisation.

Nonetheless, local preferences and conditions will need to be woven into the marketing mix. The more acceptable route is that of localising the marketing mix. This involves decentralising decision making at the local affiliate level. This is useful especially when it comes to areas like marketing com-munication, distribution, and to a limited extent, in the packaging area. For example, Sunsilk shampoo from Unilever could achieve a higher penetration in the toiletries market in South Asia only when it introduced sachet packs for single use and priced it at an affordable level of Re 1 in India and at a com-parable level in other South Asian countries as well. Maggi noodles, marketed by Nestle, could achieve a resounding success only when it included cooking instructions in its TV commercials and on the pack and also added taste makers to suit Indian taste buds. However, these and other successful global firms do not leave critical decisions like brand image, brand identity, product focus or positioning to local affiliates.

A study showed that two successful global firms, Nestle and Coca-Cola, standardised their product decisions but adapted their advertising, sales promotion, distribution, and customer service to suit lo-cal country preferences and conditions6. The authors of this study maintain that local aspirations and strong managements in major country markets must be respected and persuaded to accept standardised products. Even the headquarters needs to listen to local managers and not rigidly implement their standardised marketing mix in countries showing distinctive customer preferences or needs.7 The suc-cess of global marketing is based on gaining cooperation from affiliates’ managers in implementing the strategy. The approach of the headquarters towards affiliates has to focus on both the means and the ends; and also has to decide its level of intervention for each business function, product communica-tion, and other elements of the marketing mix in country markets. Global marketing can be localised through the following five decisions:

giving such managers a seat on their global board of directors.

brands. In other words, approach the planning process from a bottom up perspective rather than using a top down approach.

3. Maintain a product portfolio that includes—wherever scale economies permit—local, regional, and global brands. Hindustan Levers in India now has such a portfolio in its detergent products.

-spond to local customer preferences and competition.

Differentiation involves responding to differences in

customer preferences arising out of cultural, social and

religious barriers that divide nations.

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Therefore, localising global marketing through respecting local markets and affiliates is more likely to help a global firm succeed and win rather than one that gives no autonomy to its local affiliates and rigidly adopts a standardisation strategy.

Product Strategy for Global MarketsWe shall now discuss the most important element in global marketing, namely product decisions and strategy options, since products are globalised and other elements of the marketing mix follow suit. Here we shall consider decisions like product development and brand vis-a-vis generic strategy options.

Product Development

Lead Country Model Global marketing rests on the concept of a universal product idea. In developing a universal product, one of the principal routes is the ‘lead country model’. Here, the firm identifies its lead country markets which differ in terms of customer preferences and government policies but still demand the same product. These are generally those markets which will account for 80% of the firm’s sales. The best way to visualise this process is to consider Nissan’s strategy for the US, Europe, and Japan. Here is what Mr Yutaka Kume, President of Nissan, had to say:

‘Developing lead country car models has helped Nissan halve the number of basic models needed to cover the global markets and at the same time, to cover 80% of our sales with cars designed for specific national markets. Not to miss the remaining 20%, however, we also provided each country manager with a range of additional model types that could be adapted to the needs of the local segment . . . (helped in) . . . our resources on each of our target core markets and, at the same time, provide a part of supplemental designs that could be adapted to local preferences . . . Main challenge was to avoid the trap of pleasing no one well by trying to please everyone half way.’8

The success of Nissan’s Maxima, 240 SX, and Pathfinder in the US confirmed that the lead market model strategy was successful.

In the lead country model,the firm identifies its lead country markets which

differ in terms of customer preferences and government policies, but still demand the

same product.

I N F O C U S

The development of a lead market model involves the following steps:(a) Identify the major markets where the firm wishes to compete(b) Research customer preferences, local laws, and other environmental conditions that are going to

affect product diffusion in these markets(c) Carefully analyse competitor products and particularly that of the market leader in these markets(d) Incorporate these local market conditions in the product design(e) Allow for customer choices in terms of colours and other aesthetic preferences

The lead market model helps the marketer understand the fact that marketing in a borderless world is not the game of averages. Customer tastes in most product categories are not universal and hence localising the product is important. However, there are certain product categories where one may have a universal product because customer needs are identical. Dry cell batteries and battery powered

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products like watches, cameras, pocket calculators, and even entertainment electronics like VCRs, video games, and television sets can be standardised. But again, entertainment electronics like high performance music systems, microwave ovens, and even white goods like washing machines are designed after considering not only customer preferences but even individual lifestyles in different countries. So, Sony offers both kinds of music systems—one that has large speakers that rise from the floor of living rooms and dens (like the structural columns) for the American market and the other which is more compact and portable, for Asian and European markets where people have a space constraint. This strategy has paid rich dividends to Sony.

Insiderisation Another route to developing a global product has been termed ‘insiderisation’.9 There are products like Coke, Levi jeans, Reebok sneakers, and many others, which are universal products. When one examines their strat-egy, one finds that these firms have tried to push their products by developing a worldwide distribution network in each country. These firms became ‘insiders’ in understanding how the distribution systems worked in each of their target markets and then adapted their systems to suit each market requirement without changing their product design or composition. The reason for the success of Coke is the up front investment that it makes in its markets, in route sales force, vans, fran-chises, and franchised vending machines in Asian markets. By involving local bottlers and using their capital, Coke has been able to re-create the kind of sales force and distribution it uses in the USA. It is through this network that the company can now successfully market other products like, fruit juices, in different markets.

The process of ‘insiderisation’ demands playing a series of ‘domestic games’ against well-defined global and local competitors in different markets. It calls on the firm to outbeat competition by using ‘local cues’ in distribution, promotion, and even pricing. Hence, this strategy involves having a ‘local mask’ to disguise the ‘global face’.

However, there are niche products, like fashion products (designerwear), where a marketer can mar-ket them in a standardised manner across the world market. Because these products satisfy the same need (status) of a small but core elite customer group across different markets, who are willing to pay a premium price. But for this, one needs a strong brand image. Branding is critical and so are other parameters of brand equity like brand awareness, brand positioning, brand extension in complimentary product categories (e.g. Yves St Laurent’s range of cosmetics or garments and footwear), and brand image.

Brand versus Generic Strategy Should the firm adopt a brand or a generic product strategy and promote the product in the world market on other attributes like the firm’s competencies and country image? Until now we have built up the case for global branding strategy. Though global brand dominance is the key to global marketing, the marketer is confronted with the daunting task of creating a global brand. Today it is an expensive proposition particularly, when one considers the costs and the tasks involved in it. Today, the cost of creating a global brand can run into millions of dollars. To this is added another dimension of media, where one finds customer fragmentation occurring with multiple print media and TV channels. Increasingly, the marketer finds that there is no single media vehicle and option that can deliver the goal of helping him or her reach the top-of-the-mind awareness. Besides, global brands are under increasing pressure from private and store brands in countries like US, Canada, Europe, and even Japan. Store or shelf space is at a premium and retail organisations in these countries

The Insiderisation strategyinvolves having a ‘local mask’ to disguise the ‘global face’.

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gain bargaining power over the manufacturers. Added to this is the fact that the customer is becoming indifferent to the brand as brand equity is getting diffused. Life cycles of brands are also getting shorter as technology progresses and competitors gaining access to the same technology in the world market.

Today, China, Taiwan, and Hong Kong, with garment and tea exporters from India and Sri Lanka have shown a way out of this through the strategy of generic product. This strategy is based on the following competencies of the firm:

(a) adherence to buyer’s time schedule (b) ability to be in the market when the buyer wants the product

-tions

The generic product strategy succeeds only when the firm and the country have been able to create a credible image in the customer’s mind. This will also succeed when there is no conflict of interests between the buying organisation and the manufacturing firm and the latter has been able to estab-lish inroads into retail organisations in target markets. Generic strategy works only when the market is characterised by product as opposed to brand loyalty, as in the case of commodities like tea and coffee.

This strategy will deliver results in highly price sensitive but brand indifferent markets. For example, the customer wants to buy an office wear shirt or crockery and cutlery sets for his home. These are not feature based products and one finds that customer awareness of brands here is low and often price becomes the basis for purchase. In such situations, the most important watchword for the marketer is ‘deliver quality and performance at the lowest price’. Strong inter-relationships with retail chains the world over is another key component in generic strategy.10

Finally, we turn to the global competitive strategy.

Global Competitive Strategy A global competitive marketing strategy is based on the stra-tegic intent of a global firm. Hamel and Prahlad11 found that their sample firms had three strategic intents, as mentioned below:

(a) building a global presence(b) defending a domestic position(c) overcoming national fragmentation

The authors studied the world television industry and found that Japanese firms focus on building a global presence, US firms defend their domestic position in the US market against the Japanese on-slaught, and European firms fight to overcome national fragmentation. They also found that in each of these firms the different strategies were like a loose brick, each of which helped them achieve their goal.

In developing a global competitive marketing strategy, a firm needs to adopt an innovative approach to valuing the market share in different countries. Competitiveness of a firm will vary in different markets. Hence the firm needs to expand its concept of a product line. Hamel and Prahlad12 want the marketer and the firm to redefine the relevant product family—‘one that is continuous in distribution channels and shares a global brand franchise’. The firm can then map all competitive offers in the channels and evolve either a frontal attack, retaliatory, or defensive strategy. It can also help the firm understand resources requirement to build competitive muscle in the market.

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RISE OF GLOBAL GIANTS FROM EMERGING ECONOMIES

We mentioned in the opening vignette that today’s world market is not just a story of transnationals or global firms from the West and Japan, i.e. the triad economy (US, Europe and Japan). It is a story being scripted by global giants from emerging market economies. Chinese giants like Huawei Technolgies, Lenovo, Haier, South Korean firms like LG, Samsung and Hyundai, Indian IT firms and industrial groups like Tatas, Mahindras, L N

Mittal, and firms like Dr. Reddy’s, Ranbaxy and Bharat Forge are just some of the few who are today rewriting the rules of world market. What led to their growth and what is the strategy adopted by them?

Understanding the Growth of Emerging Markets’ Global FirmsOvercoming Intensive Competition in Home Market Emerging market economies saw their competitive structure getting altered as they opened their economies to foreign direct investment in late 1980s and 1990s. A large number of firms from triad economies entered these markets and local firms found their competitive advantage getting eroded. Customer was now showing a marked prefer-ence for foreign products. Chinese firms realised that their cost advantage was lost as soon as European or US firm located its manufacturing facility in China. It could now get the same cost advantage of low cost of labor as its Chinese counterpart earlier had. Not only this, it could now market the product at low cost worldwide. Hence global competition as also local competition motivated many firms in these economies to look for opportunities in the world market.

Blunting the Competitive Advantage of Western Multinationals However these firms have also blunted the advantage of their triad economy counterparts through their expertise in managing institutional voids that exist in the emerging economies. These voids are absence of special-ised intermediaries, regulatory systems and contract enforcing mechanisms. Further, firms in rapidly emerging economies are used to working under imperfect conditions including those of infrastructure and governance. This gives them a competitive strength to face competition from their western coun-terparts not only back in their home market but also in world market.

Understanding Local Product Markets Emerging market firms have become world class companies through their understanding of local product markets. They have adapted to the special needs of customers and business ecosystem. They have also exploited similarities in geographies proximate to their home economy. Chinese consumer durable giant Haier gave a tough fight to American giants like GE, Whirlpool and Electrolux and succeeded by developing products suited for Chinese custom-ers. For example, it found that rural customers used washing machines to clean vegetables. Hence it modified its design accordingly. Humid weather required Chinese to change their clothes frequently especially in Shanghai and Shenzhen. Haier developed small machines which used less electricity and water than a regular machine. Today, Haier has developed products for different customer needs. This has certainly expanded its product mix but has given it an edge which none of the western multinational can counter. In its global foray, Haier first entered Asian markets which were similar to China and then entered Yugoslavia, Germany and subsequently US in 1999. It is today in price sensitive segments and is an important player in compact refrigerators(found in college dormitories and hotel rooms) and low cost wine cellars.

LO4

Evaluate growth and strategies of global

firms from emerging economies

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Institutional Gaps as Opportunities These firms from emerging economies consider institu-tional voids not as limitations but as opportunities for filling in gaps left by government. This explains the rise of NDTV which filled in the gap of good quality independent news coverage in real time, which urban India, especially the middle class, wanted. The government controlled Doordarshan failed in this regard. NDTV also brought in world class technology and thereby delivered to customers, viewing experience of a quality available on CNN or BBC.

Strategies of the Global Giant from Emerging Economies A study of these firms re-veal that they have pursued one of the following or a combination of them to win in the world market:

(a) Customer Acquisition(b) Brand Acquisition

(d) Product Leadership strategiesTata Motors aggressively pursued the strategy of acquiring Jaguar and Land Rover. Earlier, Tata

Tea acquired Tetley, a strong brand name in the packaged tea market. The Tata group has been one of the few Indian groups that have been aggressively acquiring companies and brands, thereby making it one of the top global players in the product group where it acquired the brand or the company. Tata Consultancy Services (TCS), on the other hand, went about acquiring customers in U.S. and European Markets. It leveraged the low cost of trained Indian engineers and managers to acquire accounts in U.S. and Europe. This cost advantage was not just restricted to TCS but was available to all IT companies. Likewise Huawei, which is today China’s largest networking and telecommunication suppliers, is pres-ently one of the world leaders in the telecommunication industry. Huawei today serves 35 of the top 50 telecommunication operators worldwide and invest 10% of its revenue. Each year it conducts research and development in twelve centres, across seven Chinese cities, Bangalore and Silicon Valley, Dallas, in USA, Stockholm in Sweden, and Moscow in Russia. It has successfully won contracts from Vodafone, Reliance, France Telecommunication and BT(British Telecommunication). Recognising its presence in the world, Forbes magazine accepted it as one of the Most Respected Companies in the world in 2007.

Groups like L.N. Mittal and Bharat Forge have acquired companies in their respective areas prin-cipally with a view to benefit from the economies of scale. Both are today, one of the top three global players in their respective product markets. In case of Bharat Forge, the company also pursued aggres-sively the strategy of customer acquisition and has today diversified from just a forging manufacturer for automobile industry to forging manufacturer for other customer segments also.

Thus today no discussion on global marketing can be complete without understanding this phe-nomena of globalisation of firms from emerging economies. These firms today are going to rewrite the history of global marketing and global business. Each of these firms do not follow the prescribed multinational business strategies. Neither do two firms from the same country have identical strategies. However, these firms will have to now learn lessons in delegation and institution building from their American counterparts. For their sustainability, over a period of time, will only come when they are able to think long term and develop organisations that will transcend generations without having to depend on the family or the promoters.

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ORGANISING FOR GLOBAL MARKETING

We have so far been discussing the roles of headquarters and local affiliate management teams. Winners in global marketing reveal that while central product management is useful in directing a global marketing programme and ensuring universal brand appeal, the problem is that often it is far re-

moved from ground realities of the local market. Local initiative and decision making can help the firm overcome these problems. And the best way is to let local product managers decide on product promotion in their respective countries. Also, listening to their ideas can help the central product man-agement teams to come up with either a more aggressive global marketing strategy or a new global product, both of which can help the global firm achieve higher market penetration. Therefore, striking a balance between central control and the local affiliate’s autonomy is important to succeed in a highly competitive world market.

The Role and Impact of ICT on Global Marketing

As discussed earlier, the Internet has added a new dimension to global marketing. It is today being used not only for distributing products but also for customising the product to suit the lifestyles of consum-ers across the world. Technology, today, is used for inviting tenders and price bids. The Internet and e-commerce have changed marketing paradigms that enable any company, small or big, with a web-site to market globally. Today, consumers can order books, CDs, get the feel of the latest models of automobiles, and even newly designed and furnished homes, through the Internet. Many of the world’s best known transnationals have invested huge resources in building portals through which they could transact business with their customers. We have already talked about this in the earlier chapters. The Internet is today being used not only by manufacturers but also by large departmental stores and retail outlets like Amazon.com, Toys ‘R’ US, and Dell Computers, and by other similar products and service providers for expanding their operations in the global market.

Thus, from the organisational perspective, ICT today offers an opportunity to any firm or entrepre-neur to take his product or service across different markets.

LO5

Explain organising for global markets

SUMMARY

The world is getting smaller day-by-day. Lower trade barriers, communication technologies, and international travel, have made the world a smaller place. Customer needs across the world are homogenised. Global marketing is the only way to satisfy these needs. Global marketing differs from export and international marketing in terms of focus, goals, and content. In global marketing, the firm’s focus is the world marketplace, thus making difference between home or domestic and foreign markets redundant. The goal is to maximise efficiency and returns on investment in the world market. The strategy is dictated by local country market conditions like customer preferences, laws and competition. In evolving a global marketing strategy, the firm has to consider alternatives like standardisation (full or partial), differentiation (full or partial), localisation or niche market creation. Lead market model and insideration are important tools for developing a global product. The head-

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quarters should involve local management teams for an effective marketing strategy for gaining higher market penetration in different country markets. Global markets today are also dominated by firms from emerging economies, many of whom have become leaders in their respective product markets. They have aggressively pursued the strategy of customer acquisition, brand acquisition, and efficiency improvement through scale economies or product leadership. Today, they are a challenge to western multinationals.

POWER POINTS

1. Globalisation of business is being fuelled by developments on the political, technological, economic, and social fronts all over the world, including India. (LO1)

orientation. Ethnocentric is the home market orientation for foreign markets and a polycentric

(LO2)-

balised. Likewise, it has to decide on the product(s) to be globalised and closely analyse mar-keting communication and distribution. (LO3)

4. Global marketing strategies are standardisation, differentiation, and localisation. (LO3)5. An effective product strategy for the world market is the strategy of developing lead country

preferences and government policies, but still demand the same product. (LO3)

systems and consumer preferences. (LO3)7. The alternative to brand strategy is the generic product strategy which has been effectively

used by all developing countries, including India. (LO3)

world market. (LO4)9. Firms from emerging markets follow multiple approaches. China mostly uses its cost advan-

tage for penetrating the world market. Firms from emerging markets like India use their experi-ence of managing institutional voids to penetrate similar markets in the world. (LO4)

or a combination of them to win in the world market: (LO4)(a) Customer acquisition(b) Brand acquisition(c) Efficiency seeking strategies(d) Product leadership strategies

it market. (LO5)

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QUESTIONS FOR DISCUSSION

of them with examples. (LO1)2. In evolving a global marketing strategy for leatherware, what factors would you consider?

(LO1 and 2)3. Using lead market model, develop a global marketing strategy for a publishing house that has

(LO3)4. What are the three objectives of global competitive marketing strategy? How could each of

(LO3)5. Study the marketing strategy of Mahindra and Mahindra’s SUV and Tractor for the world

market? What lessons can you draw from this strategy? (LO2 and 3)6. One of the challenges that Indian IT industry faces is that of retaining its competitive advantage

in the midst of the emergence of other low cost centres likes China, Vietnam and some of the other countries in South America. If you were retained as a consultant to advise, what strategy would you like to suggest and why? (LO3 and 4)

(LO5)

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