Global Marketing Report: Glocalization, Strategies and Analysis

Verified

Added on  2022/08/23

|12
|3581
|20
Report
AI Summary
This report delves into the concept of glocalization, a key strategy in global marketing that combines globalization and localization to tailor products and services to local markets. It examines the standardization-adaptation debate, exploring how companies balance global consistency with local customization in their marketing mix. The report reviews literature on glocalization, its relationship with globalization, and the advantages and drawbacks of different strategic approaches. It includes case studies of McDonald's and A&W, analyzing how these companies apply glocal strategies in their product, pricing, distribution, and communication strategies. The analysis includes dot plot tables to compare marketing mix elements. The report concludes by summarizing the effectiveness of glocalization in the current business environment.
Document Page
RUNNING HEAD: MARKETING 0
GLOBAL MARKETING
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
MARKETING 1
Table of Contents
Introduction......................................................................................................................................2
Part-1................................................................................................................................................2
Literature Review........................................................................................................................2
Glocalization............................................................................................................................2
Glocalization in relation to Globalization................................................................................3
‘Global’ and ‘Local’ Business/Marketing Strategies..............................................................3
Standardization-adaptation debate’ (regarding the marketing mix)........................................4
Advantages and drawbacks of these different strategic approaches........................................5
Part-2................................................................................................................................................6
Extent to which companies apply glocal strategy400..................................................................6
McDonald’s.................................................................................................................................6
Dot Plot Table..............................................................................................................................7
A&W Restaurants Inc..................................................................................................................7
Dot Plot Table..............................................................................................................................8
Comparison to two companies.....................................................................................................8
Global Marketing approaches......................................................................................................9
Conclusion.......................................................................................................................................9
References......................................................................................................................................10
Document Page
MARKETING 2
Introduction
Glocalization is the combination of “globalization” and “localization”, which is mainly used by
the organization for describing the product or service which is produced and offered
internationally but also adjusts the accommodation of the consumer in local marketplace
(Robertson, 1995). The different organizations adopt different strategies to motivate the
customers because this supports the companies to grow and develop as well as also allow the
organization to gain the trust of the consumers in similar and different region (Levitt, 1983).
Therefore, in the present year it is considered most important strategy to gain success in the long
run and to increase capability to being success in the long run. In this report, the concept of
glocalization with relation to globalization and standardization-adaption debate is discussed. The
discussion is also made on describing the extent to which companies apply glocal strategies. In
this report, two companies “McDonald’s and A&W” are selected for discussing their glocal
marketing strategies.
Part-1
Literature Review
Glocalization
Glocalization is considered the approach of combining the strategy of global and local in which
companies an offer products and services internationally but also adjusted of the consumers
which all are in the global marketplace (Rodriki, 2018). Therefore, it is considered the approach
in which product and service of global marketplace in the local marketplace. In this organization
has to perform various rules and regulations as well as organization focus mainly on
understanding the needs and requirements of the consumers (Najam et al., 2016). The study
describes that it is important because glocalization support the organization to operate their
business in the international and local market as well as in this organization gain the capability of
earning more profits and revenue.
The study was conducted to understand the overall approach of glocalization, through the
analysis it is revealed that it support the companies to gain loyalty among the consumers and
Document Page
MARKETING 3
leads in increasing relationship with the consumers (Stiglitz, 2017). The objective of the study is
to investigate the procedure of glocalization, through the investigationit is revealed that it is the
historica procedure in which companies develop direct and cultural relations globally through
using information technologies, traditional power hierarchy. The estimation revealed that
glocalization affect the companies in more positive manner because through this companies
compete efficiently and leads in increasing the capabilities of the enterprises to compete in the
appropriate marketplace (Barrot et al., 2019).
Glocalization in relation to Globalization
The study describes that glocalization is the concept which is related with the globalization
because in this companies does reverse activities and perform both global as well as local
activities which gain the trust and loyalty to the consumers in the local market (Antràs et al.,
2017). The objective of the study is to understand the relationship among glocalization and
globalization, from the analysis it is revealed that globalication include globalization because in
this products offered internationally but also adjusted in the market locally. The objective of the
study is to understand the glocalization which is related with the globalization, the data
collection is done through adopting the secondary method that is by reviewing various literatures
(Narumi & Gui, 2016). From the analysis it is revealed that glocalization leads in providing
offering globally therefore this is the reason it is related with the globalization. However, in the
context of glocalization companies focuses on undertaking the local challenges and issues into
account.
Kothari & Lunkad also revealed that utilization of the global experience and further
differentiating the offering to increase operations in local market increase the capability of the
companies to integrate both localism and globalism (Kothari & Lunkad, 2018). However,
globalization include only providing activities internationally but in comparison to this
glocalization mainly introduced to solve the national and local problems by offering the
international product in the local marketplace by focusing on the demand and requirements of the
consumers locally.
‘Global’ and ‘Local’ Business/Marketing Strategies
Lee & Morris revealed that glocalization leads in developing strategies and policies globally and
locally it is because in this companies select the content and media according to the needs and
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
MARKETING 4
requirement of local and global market and use social media marketing strategies to promote the
products and services (Lee & Morris, 2016). Researchers revealed that majority of the companies
use glocalization strategy by relating it with the marketing mix. The objective of the study
revealed that majority of the business uses this strategy in deciding the price of the product and
services. In this companies understand the behaviour and purchasing attitude of the consumers
towards buying the product so it support the organization to make pricing strategy by focusing
on the local and global market (Lim, 2017).
Liu & Dunford revealed that various strategies were developed to gain competitive ability and to
increase the profits of the organization (Liu & Dunford, 2016). The data collection was done
through using primary method that is by taking the opinions and attitudes of the consumers.
Through analysis it is revealed that glocalization leads in supporting the company to understand
the place and market globally and locally which are high in demand for the products and services
offered by the company.
The investigation revealed that glocalization leads in deciding the product which has to be offer
in the global and local market to solve the issue of the consumers (Broner & Ventura, 2016).
Therefore in this strategy companies also offer international product locally and can also add the
items according to the needs and requirements of the consumers in the local market by serving
the needs of the local customers. Through the analysis it is revealed that glocalization results in
raising the profitability of the company can increase customer satisfaction by investing more on
research and development as well as by meeting the expectations of the consumers.
Standardization-adaptation debate’ (regarding the marketing mix)
Researchers conducted the study is understand the concept of standardization-adaption debate;
the information gathering is done through adopting primary method that is by taking the opinions
of the respondents (Almeida & Chase-Dunn, 2018). The findings revealed that standardization
considered the approach in which companies adopt single strategy of marketing, however in
comparison to this adaption approach include the changes in the marketing strategies according
to the requirements of the local market. Researchers revealed that glocalization concept relates
with the standardization-adaption debate by including marketing mix it is because companies in
Singapore used same pricing strategies in domestic as well as international market to increase
customer satisfaction (Bekaert et al., 2018). However, the companies also adopt adaption
Document Page
MARKETING 5
strategy that is change the prices in different market by investing more on understanding the
requirements of the consumers.
The study describes that organization such as McDonald’s and various other enterprises used
adaption strategy by changing the product with certain modification according the local needs
and by revealing the more demandable product in the different marketplace of different regions
(Janssens et al., 2019). Researchers revealed that marketing mix concept is highly adopted by
including standardization and adaption concept and support the companies to expand in
international market and to increase the profits and revenue in the long run. It is because
developing the strategies for marketing mix is considered challenge for the organization it is
because overall profitability of the organization is in the hands of the standardization and
adaption strategy for marketing mix.
Advantages and drawbacks of these different strategic approaches
There are various advantages and disadvantages of local adapted which includes that it provide
the capability to the company to attract different types of customers and can support the
organization to earn more profits (Borchert & Yotov, 2017). However, it leads in increasing the
cost and expenditure of the company as well as also increases errors due to rise in the activities.
Researchers revealed that local standardized leads in increasing the reputation of the companies
and reduce the cost of the company (Sklair, 2016). It also has some disadvantages which
includes that it increase the risk of non-acceptance of the product in the different local market
and sometimes become difficult for the companies to maintain better relations with the
customers in the long run.
The study was conducted to understand the advantages and disadvantages of global
(standardization and adaption debate). The data collection was done through using secondary
method, from the analysis it is revealed that global standardization support the company to
accept the product in different international marketplace (Dryden-Peterson, 2016). The
disadvantage of the method is that it can increase the threat of lowering the customer satisfaction
because of not meeting the needs of the consumers. Researchers also revealed that global
adaption is considered the major strategy in the present year because various multinational
companies focus on adopting this strategy, due to increasing profits and market share. The
Document Page
MARKETING 6
disadvantage of the strategy is that it increases the cost due to rise in marketing strategies,
selecting media and method of marketing (Blanchard & Olney, 2017).
Part-2
Extent to which companies apply glocal strategy400
McDonald’s
The company adopts product strategy by offering similar product, this leads in increasing the
number of consumers for the product which includes that it offer hamburgers, fries and soft
drinks internationally. McDonald’s also use adapted strategy to offer products at different market
locally which includes that in India majority of the consumers were attracted towards the
vegetarian food for this company offer Mc Aloo Tikka Burger (Borchert & Yotov, 2017). The
company also provides 50% off and other support services with the products. This strategy
increases the profits and reputation of the company in local market. Further, McDonald also uses
communication strategy in which brand name of the company support it to deliver product with
the same strategy globally and locally in different market because of better reputation of the
company in the eyes of the customers (Kothari & Lunkad, 2018).
McDonald’s include all the variables of marketing mix that is for the place it open various
restaurants at the main public areas in various markets internationally and for the local adapted
McDonald in Singapore conduct operations in “themed dining cars on the national rail system”.
In this company adopt the strategy of adopting direct distribution of product to the consumers, tit
change pricing strategy in the different market that is in the Norway price of the product is $6.79
which changes according to the needs. However, it also adopts standardized strategy by offering
similar price that is $4.20 across US (Antràs et al., 2017).
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
MARKETING 7
Dot Plot Table
Marketing Mix Subcategories Standardization Adaption
Product Policy Product benefits
Product Attributes
Labeling
Packaging
Price Policy Consumer prices
Pricing Strategies
Distribution Policy Distribution system
Physical Distribution
Communication
Policy
Advertising
Sales promotion
Brand Name
Media Selection
SOURCE: (Dryden-Peterson, 2016)
A&W Restaurants Inc.
It is the fast food restaurants in America which has more than 1,200 locations, the company
adopts product standardized strategy by delivering similar products such as hot dogs, chicken
etc, but also deliver different products in diverse marketplace which includes in US it offer
“frosty mugs” which is filled eventually for keeping in the freezer (Rodriki, 2018). This leads in
increasing motivation of the consumers towards the company can increase the profits of the
company. For promoting and communicating with the consumer’s brand name is the similar
strategy through which more consumers gets attracted towards the company. However, in
Australia Company mainly adopt the strategy of communicating through social media because of
increasing awareness about the product (Janssens et al., 2019). The estimation revealed that
majority of the consumers in Australia remains active on social media.
The company also adopts different and similar pricing strategy that is in US it offer hamburger of
$3.99 and in Singapore it offer products at different prices because of increasing the demand of
low price product. The company mainly distribute product by using standardized strategy that is
by using similar places in different regions that is estimation (Rodriki, 2018) revealed that
company offer their products and open restaurants near the public areas so that more consumers
gets attracted towards the products offer by the restaurants.
Document Page
MARKETING 8
Dot Plot Table
Marketing Mix Subcategories Standardization Adaption
Price Policy Consumer prices
Pricing Strategies
Distribution Policy Distribution system
Physical Distribution
Product Policy Product Attributes
Labeling
Packaging
Communication
Policy
Advertising
Sales promotion
Brand Name
Media Selection
SOURCE: (Sklair, 2016)
Comparison to two companies
McDonald’s adopt the strategy of creating strong brand culture by understanding the needs of the
consumers in different market. This strategy supports the company to expand in international
market by using adaption strategy. However, in comparison to this A&W Company adopt the
strategy of standardization that is using similar location of distributing the products to the
consumers (Kothari & Lunkad, 2018). The company also adopts same marketing strategies in
different regions to communicate the information about the product and to aware the consumers
regarding the benefits provided to the consumers (Svensson, 2001). Therefore, it is revealed that
there are differences in both the strategies of the companies while expanding internationally. The
marketing programs of McDonald’s is done by investing more on consumers demands and in
comparison to this A&W company develop programs by getting information about the
competitors in which the marketing strategies of the competitors is analyzed by the company.
McDonald is more global adapted in comparison to A&W because estimation describes that
McDonald expand more internationally as well as change product and marketing strategies
according to the demand of the customers (Rodriki, 2018). In Singapore McDonald’s use
different strategy of operations which is different in other regions such as US, China etc.
However, in comparison to this A&W Company is more local standardized because it adopt
similar strategies to meet the expectations of the consumers locally. This leads in increasing the
Document Page
MARKETING 9
profits of the company and also supports it in gaining competitive advantage (Narumi & Gui,
2016).
Global Marketing approaches
McDonald for increasing its marketing adopts internet strategy to spread awareness this leads in
increasing the number of customers. Therefore, to maintain consistency in branding McDonald’s
bring the strategy of increasing local flavor in its local market to increase menu items, for
example in Middle East it offer “Flatbread sandwich” in “Mexico” it offer cheeseburger to the
customers (Liu & Dunford, 2016). The company also adopt sales promotion strategy in which it
provide various discounts, offers to the customers, in the current year it also provide vouchers to
their regular customers to increase their satisfaction level and to increase customers globally.
A&W Company adopt the strategy of positioning the innovation of menu, this leads in increasing
the knowledge of the customers about the product and also raise their interest about the items
which are offered by the company (Dryden-Peterson, 2016). In Singapore it offer product by
understanding the demand that is limited products to offer for sale , however in other some
countries products offer at lower price in comparison to their competitors. The company also
adopts the strategy of making long term connection with the customers so that it can increase the
number of customers for the company and results in raising the expansion of the organization
(Antràs et al., 2017).
Conclusion
From the above, it is concluded that glocalization is considered the approach in which companies
deliver international product as well as service to local consumers for solving some issues,
therefore it is estimated that this approach is the combination of global and local strategy. The
different companies relate glocalization approach with the standardization-adaption debate. The
investigation also describes that McDonald adopt global standardization by using similar brand
image strategy in different market and use modification of product approach strategy to deliver
different product in the different region. However, A&W company use similar place to deliver
product and adopt different strategy of pricing for different consumers.
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
MARKETING 10
References
Almeida, P. & Chase-Dunn, C., 2018. Globalization and social movements. Annual Review of
Sociology , 44, pp.189-211.
Antràs, P., Gortari, A.D. & Itskhoki, O., 2017. Globalization, inequality and welfare. Journal of
International Economics , 108, pp.387-412.
Barrot, J., Loualiche, E. & Sauvagnat, J., 2019. The globalization risk premium. The Journal of
Finance, 74(5), pp.2391-439.
Bekaert, G., Harvey, C.R., Kiguel, A. & Wang, X., 2018. Globalization and asset returns. Annual
Review of Financial Economics, 8, pp.221-88.
Blanchard, E.J. & Olney, W.W., 2017. Globalization and human capital investment. Journal of
International Economics , 106, pp.165-83.
Borchert, I. & Yotov, Y.V., 2017. Distance, globalization, and international trade. Economics
letters, 153, pp.32-38.
Broner, F. & Ventura, J., 2016. Rethinking the effects of financial globalization. The Quarterly
Journal of Economics, 131(3), pp.1497-542.
Dryden-Peterson, S., 2016. The crossroads of globalization. Educational Researcher , 45(9),
pp.473-82.
Janssens, M., Maddux, W.W. & Nguyen, T., 2019. Globalization: Current issues and future
research directions. Negotiation and Conflict Management Research , 12(2), pp.174-85.
Kothari, S. & Lunkad, K., 2018. Impact of Globalization. International Journal for Advance
Research and Development , 3(1), pp.222-25.
Lee, M. & Morris, P., 2016. Lifelong learning, income inequality and social mobility in
Singapore. International Journal of Lifelong Education, 35(3), pp.286-312.
Levitt, T., 1983. The globalization of markets. Harvard Business Review, 63(3), pp.92-102.
Document Page
MARKETING 11
Lim, A., 2017. Global corporate responsibility in domestic context: lateral decoupling and
organizational responses to globalization. Economy and Society, 46(2), pp.229-54.
Liu, W. & Dunford, M., 2016. Inclusive globalization. Area Development and Policy , 1(3),
pp.323-40.
Najam, A., Runnalls, D. & Halle, M., 2016. Environment and Globalization: Five Propositions.
The Globalization and Environment Reader , 94.
Narumi, N. & Gui, W., 2016. Singapore and the intersections of neoliberal globalization.
Interventions, 18(4), pp.473-82.
Robertson, R., 1995. Glocalization: Time-space and homogeneity-heterogeneity. Global
modernities, 25, p.44.
Rodriki, D., 2018. Populism and the Economics of Globalization. Journal of international
business policy , 1(1), pp.12-33.
Sklair, L., 2016. The transnational capitalist class, social movements, and alternatives to
capitalist globalization. International Critical Thought, 6(3), pp.329-41.
Stiglitz, J.E., 2017. The overselling of globalization. Business Economics, 52(3), pp.129-37.
Svensson, G., 2001. Glocalization” of business activities: a “glocal strategy” approach.
Management decision, 39(1), pp.6-18.
chevron_up_icon
1 out of 12
circle_padding
hide_on_mobile
zoom_out_icon
[object Object]