Global Marketing Report: FMCG Adaptation vs Standardisation

This report delves into the complexities of global marketing, emphasizing the critical debate between adaptation and standardisation strategies, especially within the fast-moving consumer goods (FMCG) sector. It begins by defining global marketing as the international selling and strategic planning of products, highlighting its advantages like cost reduction and brand consistency, while also acknowledging challenges such as consumer preference differences and legal environments. The report then explores the significance of adaptation, which involves adjusting organizational attributes to survive in different environments, and standardisation, which applies universal marketing strategies across markets. It examines how external and internal factors influence these strategies, using examples such as Apple and Nike to illustrate their application. The report highlights the advantages and disadvantages of both approaches, including the importance of understanding local market needs through adaptation and the cost-saving benefits of standardisation. Furthermore, the report discusses the choice between standardisation and adaptation in international marketing, considering factors like cultural, economic, and legal differences. It concludes by emphasizing the importance of adapting strategies when standardisation fails and the role of product attributes in influencing consumer behavior, ultimately recommending a balanced approach to maximize success in global markets.

Global Marketing

INTRODUCTION
Selling a product internationally is known as global marketing. But it is more than selling
a product globally. It is the process of planning, creating, placing and promoting the product in
the international market. Global marketing is the export of goods and services into another
country. The advantages of global marketing are; lower marketing cost, helps to establish
relationship outside of the political area, consistency in brand image and so on. It also has some
disadvantages such as, difference in consumer needs and wants, difference in brand and product
development, differences in the legal environment, etc. this report will cover the significance
strategy of adaptation and standardisation.
1.1 Significance of Adoption Vs Standardisation
Global marketing is the process of creating, planning, placing and boosting the product in
the international market. Global marketing is the export of goods and services into another
country. The advantages of global marketing are; lower marketing cost, helps to establish
relationship outside of the political area, consistency in brand image and so on. International
marketing research is the accumulation, design, recording, analysis, representation and reporting
of information. Global marketing managers need to supervise different forces affecting their
international operations. There are three types of research:-
1. Exploratory research deals with identifying the quality of the problem and the related
variables. It is characterised by the high degree of flexibility, and it depends upon the
secondary data.
2. Descriptive research, focus on the statement of the variables in the problem area.
Consumer studies, market analysis, product usage, sales, media research and pricing
analysis are its example. Any of these sources can be used in descriptive study.
3. Casual research, specify the nature of the functional relationship between two or more
changes in the problem model.
FMCG are those products that can be sold be seller at considerable low cost. Non durable
goods such as package foods, beverages, toiletries and many other consumables. Some FMCGs
such as nonveg, fruits and vegetables, dairy products and baked food are highly perishable (Al‐
Khatib, Al‐Habib, M.I., Bogari and Salamah, 2016).
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Adaptation is the change in the structural, functional and behavioural attributes of an
organisation for survival and to cope up with the existing environmental conditions. It allows
individual to adapt to different environmental situations for survival. Adaptation is essential to
survive and move ahead in the global market. The ability to adapt to people, situations and
surroundings provides greater opportunities.
Standardisation is the process of developing technical modular based on the agreement of
different parties such as firms, interest groups, standardized organisation. Global standardisation
can be defined as an approach of applying universal marketing globally. In this, marketers use
same set of strategy for all the markets in order to ensure the standardisation.
Standardisation as a cost saving strategy
It involves applying universal pricing, same promotional strategies and the same range of
products. The mentioned strategy focuses on competitive advantages of the brand and aids in
developing signifiacne brand image of the company throughout the globe. According to
Conceptual Model of International Marketing Strategy, the level of both the strategies i.e.
standardisation or adaptation influences by two critical factors i.e. external and internal.
According to the Theodosiou and Leonidou, the mentioned strategy possess direct influences on
the growth of the company. It can hamper the sales, market share, customer attitude and profit
capacity of the company. For example, Apple company, are highly standardised and this is
affected not wholly but partially by the fact that its products such as I Phone, I Pad and other
devices do satisfy the same types of customer’s needs. Strategy of standardisation aids in gaining
attention from word of mouth publicity as well (Clarke, Owens and Ford, 2015).
Global image of the brand can be strengthen through standardisation to integrate
marketing communication strategy. Nike has immensely benefited from standardisation strategy.
Such as it has build profit maximisation. Factors such as brand image, product category, target
market, business environment and structural elements affect the degree of standardisation in
international marketing. Large number of multinational business of different industry applied
standardisation approach such as, Nike, Adidas, Apple, Johnson & Johnson, etc.
Effectiveness of Adaptation as customer-orientation strategy
This strategy aims to change different features of the products and services in different
market with a motive fulfil the needs of consumers. Adaptation has various advantages, one of
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the advantage is that they meet the need of local market in significance manner and hence
certainly aids in boosting the overall customer satisfaction level. Local customers appreciate
design of the product, its functional benefits and competences as it is in accordance to their
needs. This tactic has proved to be very effectual while having a motive mass consumption of
any given products. It is being used by Red Bull so that it can able to touch the needs of
customers of different market (Nainaar and Masson, 2018). Company can also apply certain
element of marketing mix in adaptation strategy. For instance, Nokia, a worldwide
communication and information company, concentrate on product adaptation to a greater extent.
This set of approach supports in allowing global marketing that aids in meeting the requirement
of regional market. These changes may be political, economic, social or technological.
Along with some advantages of adaptation strategy, there are also some disadvantages of
it. One of the major disadvantage is high level of financial expenses. Learning the description of
local culture can prove to be an expensive initiative. Another disadvantage is low speed of
implementation. In some cases, global businesses following adaptation strategy may even initiate
change some market. However, this is difficult in real situation and it depends on factors such as
industry nature, life cycle of product budget of research and development, infrastructure level in
the local market, the competition level and others.
Standardisation vs Adaptation in International Marketing
At present to choose the right marketing strategy is one of the big question for companies in
different foreign market. The companies have choice between a standardized and adoption of
international marketing strategies. For the first company used to make choice of one marketing
strategy and with the few modifications in it in different countries. Therefore, it is important for
companies to ensure that customers have same needs and demand or not. For instance,
McDonald operates its business in most of the countries with the use of same marketing strategy
due to which many times it faces losses(Roni Sahroni, Margaretha and Budiastuti, 2017.). It is
because of difference in cultural, economic and legal factors in various countries. This lead to
force the adaption of different marketing strategies for each market segment.
In order to follow the standardization marketing strategy companies, need to assume that
their customers in different countries have the same test and desires. Hence it can be said that
there are many positive aspects which can support this strategy. As per the economies of scales,
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money can be easily saved basically in preparation of advertisement. It leads to create less
confusion between customers who used to travel in different counties. Along with this it also
leads to help in presenting strong brand image in global market(Zeriti, Robson and Leonidou,
2014). It provides opportunity to companies which helps them to gain experience and knowledge
from different countries, and also helps them to find out issues globally. Another advantage is
that there is no more requirement of exchanges of ideas within the firm and the standardization
also allow a better use of their resource management.
Examples are such as Apple which is of high standard and it is been perceived by the fact
that its products iPhone, iPad etc can easily satisfy customers’ needs in all over the world . The
extent of standardisation is one among the significance factor for attaining the success in the new
market. Moreover, it offers benefits of monetary value, but it fails to understand the variation
which are related with each market. On the other hand, adaptation strategy can be applied in
order to understand differences related with each individual market.
There are lots of positive aspects which support standardisation strategy. Marketer can
save a lot of money through economies of scale, specially by advertisement. Which will help the
consumers to be less confuse when they travel at different place as they are able to witness same
set of promotion at every place. Through this, companies can gain knowledge about different
culture and can compile the same to make a standard strategy which can be adopted at global
level. With the help of it, there will be high amount of exchanging of business ideas and
technological know-how which will aids in developing significant strategy of standardisation.
Through this, overall effectiveness of stategy can be increased and aids in capturing larger
market share (Liu, Perry, Moore and Warnaby, 2016.)
When a standardised strategy forecasts a failure, an adaptation of the global marketing
strategy is useful. In that case, product related properties affecting consumer behaviour. Even if
the products features and functions are same in various economies, perception of these qualities
may vary from one to another. The necessity to implement this strategy within the host countries
is to attain high success. When the company will not be regarded as a foreign one, it is also
important for customers because they tend to prefer those companies which are familiar to them.
Further more the company has to change the advertisement of the products or services after
different stages of the life cycle of the product in different markets with the aim to attract the
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buyer. The company is able to use different sources of media, is the another importance of
adaptation strategy, since availability and usage differ in different counties(Khan, Lew and Park,
2015).
An adaptation of the international marketing strategy is one of the effective useful at the
time when standardized strategy lead to forecast a failure. It is the case in which product related
attributes can easily influence customers to make purchase of products and services. Even if all
the features of products are similar in different countries. This strategy can be adopted in host
countries for making sur that they can compete successfully in different markets globally. Apart
from this company can modify their advertisement as based on its product life cycle in different
marketing with the goal of targeting large number of customers. At last firm can easily use its
different media sources so that customers can be highly influenced. For instance, Red bull in
North American is developed in colour option like red, blue and silver. Whereas in North
America, red colour is perceived as a symbolic representation of action and courage and blue
signifies Dynamism and Youth.
CONCLUSION
The report concluded that, global marketing is selling a product internationally. The
advantages of global marketing are; lower marketing cost, helps to establish relationship outside
of the political area, consistency in brand image and so on. Further it concluded that FMCG are
products that are sold quickly by the marketer and at relatively low cost. Non durable goods such
as package foods, beverages, toiletries and many other consumables. Adaptation is the change in
the structural, functional and behavioural attributes of an organisation for survival and to cope up
with the existing environmental conditions. And lastly it concluded that when a standardised
strategy forecasts a failure an adaptation of the international marketing strategy is useful. In that
case, product related attributes influence consumer behaviour.
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