Global Marketing: Glocalization Framework and Market Expansion Strategies

This report discusses the concept of glocalization in global marketing and its benefits for companies. It also explores market expansion strategies and the advantages and disadvantages of entering the emerging market. The report includes a case study of Hindustan Unilever Limited and Next plc.

Global Marketing

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Glocalization framework.............................................................................................................3
Evaluate benefits that company achieve through glocalization...................................................4
Enlist a real business world that demonstrates glocalization.......................................................4
TASK 2............................................................................................................................................4
Brief background over the BRIC Country...................................................................................4
Political risks for the India...........................................................................................................5
Economic environment of India..................................................................................................5
Summarize advantages and disadvantages for the UK company................................................5
TASK 3............................................................................................................................................6
Reason of internalize...................................................................................................................6
TASK 4............................................................................................................................................7
Market expansion strategies........................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Global Marketingis the procedure of adjusting marketing strategies of the organization
toadapt the condition of other countries. Global marketing is essential for the companies because
it helps to increase their market share as well as customer base. In this report will discuss about
glocalization framework and it’s benefits that companies achieves in their businesses.
TASK 1
Glocalization framework
Glocalization is the process of adaption of global and international products that is
developed and supplied globally but it is also adjusted for consumer in a local market. In other
word, glocalization is basic to the company’s capability of entering into multiple marketsaround
the globe while ensures that each local user’s need is fulfilled. Glocalization is not that some
companies with global ambition have mastered (Kotabeand Helsen, 2020). Organizations require
to excel on various activities like leveraging at local people, customizing process, and adapts
global technology in order to develop smart glocalization strategies then they can achieve glocal
ambition (Glocalization- Global + Local Approach of Brands, 2020). Glocalization is the big
investment but in exchange it brings more commercial benefits. It provides wider access to the
company to target bigger market in different cultures. Most of the companies adapts this
approach their businesses because it creates prosperous of economic development thatis achieved
because increase high number of interconnectednessamong countries. According to glocalization
framework, localization of country needs differentiation in products, services, and sectors while
globalization needs standardization among differentiation. Globalization stated that company
must have low production and selling cost then it can enable to generate high profit margin over
it. While localization concept stated that company must sell such product or services which takes
consumer culturally close then they will be ready to pay extra. As per the concept of
globalization, company must have low complexity in switching one product segment to other one
that will automatically improve global speed of the company. While localization quoted that
organization should give flexible response over needs of local customers that will help to retain
them for long period. When company has loyal customers then it become easy to penetrate local

and regional market according to localization concepts. Based on the above discussion it has
analysed that globalization and localization both supports company to get success in it’s business
at glocal level (Keegan, 2017).
Evaluate benefits that company achieve through glocalization
“Think globally, act locally” means company have toadjust their marketing accordingly
each geographical audience while maintaining a global brand. In other word, when companies
enter into a new market then they should try to adjust their marketing in such manner which
supports in globalization but retain local people with the company for long period. There are
various companies who have adopted think global and act localso they have discoveredvarious
ways to offer value of leveraging innovationwhich occurredfar from the headquarter and
supplied them back to headquarter. The major benefits of adoptingthis strategy is that when
company gain access to local market knowledge with the support of experts across continents,
then it looks to grow business at international level so it design effective workplace which
supports in both local market culture and global brand value. Thus, companies enable to establish
strong glocal presence in it’ssector (What does think globally and act locally mean in
marketing?, 2020).
Enlist a real business world that demonstrates glocalization
Hindustan Unilever Limited is the great example of glocalization that operates at glocal
level and posses’ wide range brand portfolio. It offers it’s product and services across the world
with the support of subsidiaries i.e. Unilever. It is a British Dutch company that posses’ wide
product line i.e. personal care product, water purifier, cleansing etc. it is considered one of the
fast-moving consumer goods company. It is more famous for it’s high quality product portfolio
and has captured good market share in it’s sector at individual level.
TASK 2
Brief background over the BRIC Country
Republic of India is considered one of the emerging superpowers of the global because it
is included in BRIC country as emerging market. It has wide range of demographic trends and
economy development. In 2015 it has became one of the fastedgrowing market in the context of

economy with 7.5% around GDP. It is good for those companies which are planning to expand
it’s business in emerging markets because this country comes in world’s second largest
population wherein 50% people are below the age of 24 and approximate 65% population is
below the age 35. So it is great opportunity for the new beginners to expand it’s business in this
country. The reason behind is that it gets lots of option to generate high profit margin from the
customers by offering different products with quality ((Leonidouand Hultman, 2019).
Political risks for the India
Political instability is one of the major political risk in India so there has very slow
process of governmental decisions. Pricing or tax issue, ownership, cultural problems, legal
disputes due to local suppliers and partners are the major political risks that can be faced by
companies who are planning to expand their business in this country. But such consequences
have to face all companies in each country wherein enter but they can overcome with political
issues. For example, if companies work on flexible political policies then they do not have to
face any difficulties to bring change in policies if government change.
Economic environment of India
Economy of India is considered as a developing market economy. It has gained 6th
position in the world in the context of economy and has achieved third largest position based on
purchasing power parity. It has strong demographics and investor friendly corporate sector which
gives India edge over it’s emerging market (Van Der Maasand Nower, 2020). It contributes
almost 3.2% of world’s GDP due to this it is considered one of the good emerging market. There
are various potential investors in India who invests on such businesses which can lead advance
commercial growth. In this country multiple cultural people lives which can help new business to
access on other countries as well in effective manner.
Summarize advantages and disadvantages for the UK company
There is a great example of Next plc. it is a British multinational clothing, footwear and
home product retailer company. It is headquartered in UK and operates in limited countries
across the world. India is the best option for the Nest plc because it will help company to gain
more economic development and explore it’s access in others countries. It has established good
brand image in it’s sector due to it’s high quality product with wide range of product features. If
company expand it’s business in India then it can targets multiple segments for it’s existing

product line. This country is known as colourful India because there are multiple cultural people
lives and celebrates all functions together. So, it can recruit multiple culture potential staff who
will support company to meet local user’s needs and expectations. The employment rate in India
is moderate and people are highly talented so, it helps Next plc to create some innovation in
it’sexisting business activities which can lead various commercial benefits. But it can get
negative impact as well after entering in this market because there has high political instability
which can disturb business functioning. In India has moderate poverty rate so, it cannot sell
highly expensive products to all customer. These issues can be faced by Next plc in India (The
Emerging Indian Economy, 2019).
TASK 3
Reason of internalize
Each company i.e. Unilever wants to get economical and business growth in it’s sector so
they do their businesses at internalize level. Due to internalization, it has enabled to gain access
to lower cost or gets better value factor for the production perspective. With the internalization
strategy company targeted over low cost operations so that it soldit’sproduct at lower costs and
generate high profit margin over them (Kulkeand Suwala, 2016). In addition, companies enable
to reduce economies of scale per unit cost production due to operating in high volume.
International trades helpUnilever to increase number of potential clients who can support to
expand business in other countries. Each country across global opens a new pathway for
improving business growth as well as increase revenues which can be understood by Unilever’s
success in the glocal market. The main motive of internalization of the Unilever is to increase
foreign demands for the organization’s product, lack of demand in the domestic market,
customer’s portfolio enlargement, increment in sales and competitive pressure in local market.
These are the major motives of internalization through which company has achieved success in
it’s business. The major trigger of internationalization was that Unilever wanted to be closed to
their supply sources, achieves various benefits from global souring advantages and gets high
flexibility in product sourcing. Internalizationhas not only supported Unilever to expand it’s
business and build strong customer base but also establishes a glocal presence across the people
which sustains business for long period.

TASK 4
Market expansion strategies
Attributes Waterfall Approach Shower approach
Definition
It is a market expansion strategy
that allows company’s
revitalizing product in the
maturity stage, prolongs their
life cyclewhile maintaining
determinant position in the
market. so, it is also known as
market entry strategy.
It is alternative business
expansion strategy that is also
followed by various companies
i.e. Unilever plc to access on
multiple countries across the
world. this strategy contains all
countries i.e. advanced,
developing and less developed
countries at common level.

Concepts
According to the strategy,
company priorly focused on
advanced countries because
when it successfully enters in
the advanced countries like US,
UK then it can easily make
approach for other countries like
emerging countries i.e. India,
Russia etc. Emerging countries
also plays vital role in
company’s success because
there are companies which
already have enter in the
emerging market then it often
become difficult for the
company to establish it’s
business in the emerging
market. later one company must
enter in less developed countries
because it will help them to
develop large customer base. It
is the way of market expansion.
However, this market expansion
strategy bit difficult because it
needs good economical
infrastructure then company can
follow this marketing strategy.
According to this strategy,
company is free to expand it’
business in any market without
following any systems.It can
start with less developed
countries, developing countries
or advanced countries. There is
no issue. But there is one of the
most important thing is that it
should have high understanding
about all type countries before
entering then it can get success
promptly in them (HATA,
2016).
Examples There is a great example of
Toyota which have followed
waterfall approach to expand it’s
business and has achieved good
brand image at glocal level.
Unilever is one of the best
exampleswhich has followed
this market expansion strategy.
it was established in 193` as
Hindustan Vanaspati
Manufacturing Co. in India. As
know India is an emerging

country. While establishing it’s
business in emerging market,
Unilever has accessed all less
developed countries wherein
customers do not have good
disposable income. So, it
categorized some product at
lower costs so that each
customer can buy them easily.
Thus, less developed countries
help it to build large customer
base while emerging countries
i.e. India supported to reduce
production costs. When it gets
good approach in the context of
economic development and
loyal customer base at that
period, Unilever expanded it’s
business in developed countries
like UK, US etc. through which
it has enabled give availability
of it’s product at glocal level
(Roudometof, 2016).
CONCLUSION
This report has been summarized about global marketing concepts and evaluated
glocalization framework. It has given brief information about emerging market from BRIC in the
context of economic development, political issues in this report. Furthermore it has been
concluded the advantage and disadvantage of moving into emerging market with the support of
Next plc. Significance of internalization with the support real business example i.e. Unilever has
been concluded in this report. Comparison between waterfall and shower fall market expansion
strategies with the support of different organizations examples can be summarized in this report.

REFERENCES
Books and Journals
Kotabe, M.M. and Helsen, K., 2020. Global marketing management. John Wiley & Sons.
Keegan, W.J., 2017. Global marketing management. Pearson India.
Leonidou, C.N. and Hultman, M., 2019. Global marketing in business-to-business contexts:
Challenges, developments, and opportunities.
Van Der Maas, M. and Nower, L., 2020. CONTRADICTIONS OF RESPONSIBLE
GAMBLING POLICIES AND GAMBLING PROVISION IN THE CONTEXT OF
RAPID MARKET EXPANSION. Gaming Law Review. 24(7). pp.456-465.
Kulke, E. and Suwala, L., 2016. Internationalisation of grocery retailing in the Global South:
general conditions, formats and spatial expansion patterns of selected MNEs. DIE
ERDE–Journal of the Geographical Society of Berlin. 147(3). pp.187-200.
HATA, S., 2016. Capability Building as a Reason of the Internalization. Transactions of the
Academic Association for Organizational Science. 5(1). pp.45-50.
Roudometof, V., 2016. Theorizing glocalization: Three interpretations1. European Journal of
Social Theory. 19(3). pp.391-408.
Online
What does think globally and act locally mean in marketing?. 2020. [Online]. Available
Through:-<https://findanyanswer.com/what-does-think-globally-and-act-locally-mean-
in-marketing>
The Emerging Indian Economy. 2019. [Online]. Available Through:-<https://csis-website-
prod.s3.amazonaws.com/s3fs-public/legacy_files/files/publication/
130206_Khambatta_IndiaEmergEcon_Web.pdf>
Glocalization- Global + Local Approach of Brands. 2020. [Online]. Available Through:-
<https://www.entrepreneur.com/article/331465>