Glocalization and Global Marketing Mix of Nestle and Coca-Cola Company

GLOCALIZATION AND GLOBAL MARKETING MIX OF GLOBAL BEVERAGE BRANDS
CASE OF NESTLE AND COCA-COLA COMPANY
TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................2
LITERATURE REVIEW................................................................................................................2
STANDARDIZATION AND MARKETING MIX ANALYSIS...................................................3
COCA-COLA AND NESTLÉ CHOCOLATE BEVERAGE GLOBAL MARKETING
STRATEGY....................................................................................................................................5
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................9

INTRODUCTION
Friedman first characterized glocalization as the ability for given way of life to retain it’s
importance in how it fits the accepted standards in the society when it experience other robust
society beliefs and values. According to Friedman, (1999) glocalisation is a practice undertaken
by companies to satisfy the interest of the local customers in a specific country. As companies
grow and seek to develop a global brand, the idea of glocalization is necessary to command
different markets in specific countries. Glocalization, is achieved either through standardization
of the concern products to fit the required needs of customers across the globe. The process of
customizing the products to meet the specific consumer needs in the niche markets is referred to
adaptation.
LITERATURE REVIEW
Global marketing is more intricate than global advertising on account of the rate of more
perplexing factors, such as; difficulty in increasing positive data, diversity of geographic areas,
strategies, and contrasts in environmental variables. According to Kothari,(2012) global
marketing is a process of identifying goods and services that consumers around the globe need
and afterward providing them at the correct cost and place. In the international market this the
process is the same as the local marketing, yet with some critical adjustments to reflect the
changing consumers want and needs in the new markets.
U.S. specialist Theodore Levitt contended that because the world is getting to be institutionalized
and homogeneous, organizations should market similar products similarly in all nations (Levitt,
1986). Innovation, asserted Levitt, makes needs and preference join all through the world. Global
market managers are tasked to reduce the cost of production and marketing cost by standardizing
the physical attributes the marketing products and strategies adopted.. Different analysts say that
standardization is only one of numerous methodologies to enter global marketing effectively.
They contend that standardization strategy is not the best strategy and encourage smaller firms to
adjust to indigenous cultures while enhancing their advantage to gain local markets.
Consumers needs across national markets are diverse and never satisfied. Customers demand
products that satisfy their tastes; social, political, legal, and economic factors. This, therefore,
influence customer preferences and companies worldwide. Moreover, Product standardization is

more probable when countries share a similar level of economic development. Many years of
economic excellence have driven Indian shoppers to pick worldwide brands, for example, Ford
(Keegan and Green, 2014)
STANDARDIZATION AND MARKETING MIX ANALYSIS
The debate over standardization versus adaptation of marketing strategies in global markets has
seethed for quite a few years. This argument has by, and mainly occurred at the total level to
incorporate every one of the four key strategic areas of the marketing mix consisting of price,
product, promotion, and place combined (Prakash1 and Singh2, 2011).
Standardization implies offering the same product in different countries markets. The benefit of
standardization is low cost, like planning, manufacturing and distributing the same item across
nations probably reduces the cost of investment. However, offering similar products across
nations might not be desired due to the different political environment, natural environment,
market conditions, competition and technological. As customers of various nations have diverse
necessities, a standardized product might not be satisfactory to all consumers (Roger J.
Calantone et al. 2004). Consequently, product standardization refers to how much the physical
qualities or traits of a product and its packaging contrasts over national markets
Even though customizing products for various markets increases the cost of production and
marketing, the customized products will probably fit the requirements of a large number of
consumers across the global markets. This, therefore, will improve the sales margins of the
company which improves the gross profits and market share as well. For instance, Procter and
Gamble's Oil of Olay skin lotion has a distinctive sort of products in various global markets to
appeal to different needs and desires of the customers. The different researcher has concluded
that instead of changing the product language and attracting consumers of products in different
countries across the globe, there is a need to find an optimal solution between standardizing and
adapting to the specific market (Dhar, 2006).
Global marketing managers ought to address issues on how to price the products, how to sell the
products, and how to covey those products to the customers. These strategies are referred to as
the 4p’s in marketing in marketing planning. According to Wall and Rees, (2004) global