Lottafizz Corp. Globalization Strategy A strong globalization strategy is essential to the expansion of Lottafizz into other international markets. A clear understanding of direction, purpose, and goals will provide Lottafizz with the structure it needs to be successful abroad. Several different areas are important to understand in order to design and implement the best global strategy. Globalization covers three strategies: international, multinational, and global. Each strategy provides its own benefits and risk. (Lynch, n.d.; Developing a global strategy, n.d.) The evaluation of international expansion needs to take into consideration areas that will guide the global strategy. As a beverage company with 10% of the total product offering …show more content…
A multinational strategy will need to take into account the amount of branding that will need to be done in each individual market. Depending on the current branding, items may need to be adjusted to meet the cultural differences and make sure that the product is appealing to the desired market. An evaluation of the cultures, morals, values, beliefs, economics, and preferences are necessary to make sure that the product meets the needs and wants of the market. The competitors in each market will need to be assessed and a marketing strategy will need to be created for each country and potentially different demographics within the …show more content…
This is the most risky strategy, with the most potential to fail or could be extremely profitable. The success of this strategy is a product that is essentially known and desired for its uniqueness, and the brand is most commonly the driving force. If properly researched, a market plan can be designed to address the cultural differences in such a way that it would be culturally acceptable in several major markets. It is important to understand that the resources necessary to complete the initial marketing strategy will be extensive. Some successful global strategies include IPod, Coca Cola, Pepsi; these products are essentially the same no matter what country you purchase them in. The challenges of a global strategy include but are not limited to the extensive cultural differences across the world, by treating all countries as one market you are expecting markets to conform to the company’s philosophy wherein there might be an expansive market that with some consideration could embrace the product and provide increased profit. Several countries that could provide the most cost effective manufacturing would not be receptive to the product without some value proposition
International marketing is the sales and promotion of an organizations good and services to customers in global countries. It needs huge amount of finance to run the business. It is a complex process because each countries has own culture, law and legislation and own currency. Global business companies need to follow different marketing strategies based on customers’ needs, wants and demand.
There are many critical factors contributing to the success of a global company. Some significant aspects that I had seized are the global brands (Holt et al., 2004), the distance matter (Ghemawat, 2001), the international strategy (Ghemawat, 20...
Each strategy is based on being high or low in the following two categories global integration and national responsiveness. To have a low global integration it means the company doesn’t operate in every country. If the company is low in national responsiveness it means your customers use the product in the same way – no matter which country they are in and vice versa for high. International strategy is low in both global integration and national responsiveness. While, global strategy is high in global integration and low in national responsiveness. This particular strategy is low in cost. Next, Transnational strategy is high in both global integration and national responsiveness. This strategy is considered high in costs, but the most common strategy companies pursue. Lastly, multi- domestic strategy is low in global integration and high in national
All sizes and types of companies can take advantage of the globalization of markets with the following potential benefits such as 1) reduced marketing cost by distributing and promoting the standard products or services globally with standardized approach (e.g. Coca-Cola and McDonald’s companies, 2) bigger market opportunities to increase revenues with access to broader coverage in the global marketplace, 3) enable more stable income with diversify markets globally for better granularity to compensate the impact of certain seasonal goods or services from only one domestic market, 4) lower risk from inconsistent or unexpected short product life cycle
Investing or venturing into the international market involves critical analysis of the internal and external environment in which the company operates. Usually, a company will decide to venture internationally due to a saturated market or fierce competition in the current country of operation. The demand for a company’s products may have diminished as a result of an economic crisis thus the company will target a foreign market to sustain its sales. In other words, the firms expand internationally to seek new customers for its products. For example, the current Euro zone crisis led to low demand in Europe and many companies extended their businesses to emerging markets where demand was high. A company may also venture in the international market to enhance the cost-effectiveness of its operations especially for manufacturing companies that will benefit from low costs of production in developing world. Global expansion is a long term project as it involves demanding logistics to be successful. Thorough research must be undertaken to ensure that the expansion will create value for share...
...d i.e. to use a mix of both the strategies. Some academic experts also presented the same arguments which stated that the company should use standardized tactics and adapting others to difference market is necessary. Such authors believes that both the standardization and adaptation are nothing but a matter of degree to use in international marketing strategy. Also McDonald strategy is the best example of such arguments where the company has globalized it brand but localized its marketing strategies. Considering the success of McDonald I would strongly recommend that a right balance of standardization and adaptation is need to ensure good growth and success in international marketing. Hence it can be concluded that if a company wants to be successful at global level, then it should include elements of both standardized and adaptation approach in its marketing mix.
Developing a global brand largely depends on the brands’ ability to explore fresh avenues and to sustain its competitive advantages in terms of economies of scale and productivity. A global brand is one which is perceived to reflect the same set of values around the world. A global brand removes the national barriers and linguistic blocks while marketing internationally.
Today, many companies enter the global market, and some companies have become extremely successful in the global marketplace and others still struggling. In Theodore Levitt’s article “The Globalization of Markets”, he states that a well managed corporation focuses on selling standardized products with high quality and low priced instead of focuses on selling on customized products with high cost. Levitt defines the differences between multinational corporation and global corporation, and adopts many specific examples to proves his view. He defines the multinational corporation who operates in many countries and adjust its product based on the taste of specific region. This will result in a high cost to produce the product because company have to input more resource into each individual product. However, global corporation sells similar product worldwide at relative low cost. According to Levitt, the cultural differences are becoming more and more “homogenized”; therefore, becoming a global corporation will lead to the successful of the company in the global market.
If a company has set its objectives there is need to look into the following. Which countries are their target market and who are the consumers and how or which marketing strategy should they use to reach the consumers. The company needs to know what products are best for their chosen customers and if there may arise a need to adjust the company should be ready for it. The other thing they should consider are the import regulations in their country, market and the global rules also should focus on the competition involved looking...
Along with increasingly liberalised trade policies, economic integration, higher stability of monetary transaction and development in transportation as well as communication, international business has experienced a dramatic rise (Czinkota and Ronkainen, 2001). This rise is also accompanied with enormous challenges that generate from differences between multinational companies’ home countries and foreign markets. Therefore, international marketing strategy that aims to achieve business success in competitive overseas markets has become a focus of studies especially in terms of standardization and adaptation. Years of fierce debates generate three basic perspectives. From a standardization perspective, reasons for standardizing strategy can be growing market similarity, economies of scale, homogenized customers, technological advance and consistent corporate brand (Levitt, 1983; Theodosiou and Leonidou, 2003). By
Global segment include relevant new global markets, existing market that are changing, important international political events, and critical cultural and institutional characteristic of global market. When company entering the global, it automatically can increasing number of people believe or consumer in the multiple nation and this si...
This depends of course on the product and how much standardization it can support. There are cultural differences with the international market, so it can affect the adaptation of the product, price and promotion. The distribution channels can be affected by social conditions, so finding a balance between the degree of standardization and adaptation of the different elements of the marketing mix. Adapting the marketing mix to the local situation will lead to success and increased market shares. So by thinking globally but acting locally and take cultural differences into considerations is the overall strategy. Other marketing options could include: Discounts, competitive pricing, advertising and promotion support programs through multimedia TV, radio, print and PR support, plus heavy consumer couponing, sweepstakes, and contests, free samples or trial offers, sales incentives and programs, and developing a rapport with the consumer influences buying power through salespeople. Also by marketing and promoting through Internet/Web/e-commerce, using online customer forums for ideas and feedback as well as the general feel of the product, using software for tracking customer analysis’ and marketing research databases.
The one-size fits all strategy asserts that a single message is used for all the products that the company produces. Regardless, each prod- uct should have a unique message that would not only uplift the global Coca-Cola brand but also the localized ones. In other words, the brand should be designed to support and correlate a mis- sion to end some of the pressing needs of people throughout the world. Also, the company can improve its efforts when it shortens the feedback loop between its local and international brands. It is recommendable for the Coca-Cola Company as a CEO to customize the strategies so that the customers from the local areas can still access the global brand. This implies that the local mar- kets should also sell the international brand of the drink in addition to the local ones in a bid to improve their association. This would ensure that both brands of the Coca-Cola drinks have ade- quate markets. In the end, the company would realize more profits than it did before. Coca-Cola would, therefore, be able to meet its objectives concerning the localization strategy and global- ization. It is recommendable for the Coca-Cola Company also to install systems that would allow its local brands to reach people across the world. In this sense, the local products can identify and serve new markets allowing them to serve as
From my perspective, this project is challenging yet it provides our group an opportunity to embark in a real task to develop a strategic plan for a real client. We did confront difficulty and overcome obstacles such as dealing with the clients, understanding and taking advantages of the multinational group, creating insights of the projects, and adding value to the company. In fact, we took this chance to apply and turn the theories of global competitiveness into practice. Thanks to the project, I have enhanced my personal skills of interacting with the client and the team. I also comprehend and am able to apply such concepts of the firm advantages analysis, the industry analysis, the market scanning, the brand building, and the strategic alliances as valuable tools of building an effective entry strategy for firms in reality.
In week five we learn about the importance of globalization and how it can help your company’s profits grow. There are many things to look at when selling globally as different cultures need to be looked at differently when making a marketing strategy. If you understand how to market your products to different cultures in different countries you can take advantage of the profits that can be made through globalization.