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
We propose a branding strategy which takes into account the brands capabilities and competencies, strategies of competition brands and the outlook of consumers experience in their respective societies. As an international brand there is the challenge of staying connected with local customers. We will overcome this by adapting marketing strategy to local needs using a variance of standardized marketing mix and an adapted marketing mix.
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.
...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.
in many countries all over the world, but international marketing is not a simple activity that can be successfully applied by every firm. First, to achieve success in international marketing activities, a company should consider economic, social and cultural facts about the countries which the firm plans to expand its activities to.
The beverage industry is highly competitive and presents many alternative products to satisfy a need from within. The principal areas of competition are in pricing, packaging, product innovation, the development of new products and flavours as well as promotional and marketing strategies. Companies can be grouped into two categories: global operations such as PepsiCo, Coca-Cola Company, Monster Beverage Corp. and Red Bull and regional operations such as Ro...
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.
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...
Regarding the international expansion, a great concern of a firm is to identify it promising markets. That is the problem of answering the questions: How does a firm evaluate its targeted markets? What criteria helps select the market? For these reasons, this report will develop a practical guide with highly recommended practice for the firm to evaluate and identify its attractive export markets.
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.
Multinational strategy is to improve the efficiency in location and product as different place which have same resource but get benefits of lowest cost in production of same product. As for example the production of toys involved excessive labour cost so its good that if production will be done in which country where labour cost is low. That’s what wal mart is doing (Diaconu, 2012).
“International firms market their existing products and services in other countries the same way they do in their home country” (Kerin, Hartley, 182). An example of an international firm is Avon, the product is being distributed through direct selling in Asia, Europe, and South America. A multinational firm consist of different unique parts and markets to each part differently. The strategy multinational firms use is called multi - domestic marketing strategy, meaning “they have as many different product variations, brand names, and advertising programs as countries in which they do business” (Kerin, Hartley, 182). An example of a multinational firm is Procter & Gamble markets Mr. Clean because they are on different sides of the world. A transitional firm views the world as one market and emphasizes cultural similarities across countries or universal consumer needs and wants more than difference (Kerin, Hartley,182). A global marketing strategy is what transitional marketers employ. A global marketing strategy is “the practice of standardizing marketing activities when there are cultural similarities and adapting when cultures differ” (Kerin, Hartley,182). The global strategy also allows marketers to realize their scale of production and marketing activities. “Global consumers are a group of consumers living in many countries or regions of the world who have similar needs or seek similar features
Fourthly, the market development strategy is a target with different segments in order to enter the markets around the world. The international expansion has as
Globalization encourages worldwide business. Globalization is an efficient process by which all the nations of world will commonly try to set regular universal standards & regulations (both created & recommended) which will encourage business around different nations. Business around nations or elements crosswise over different fringes is called universal business.
Global strategy refers to the conscious and tactical plans laid by organisations in a bid to fit into worldwide business arena (David, 2012, p. 49). Companies have embraced different methods and views of how to exert authority and gain the upper hand in terms of competitiveness on the global platform. The two commonest approaches are the competitiveness and resource-based views of global strategy. Despite their effectiveness, both differ enormously in terms of foundational principles. More importantly, resources used to help organisations acquire a favourable state as touching global strategy can easily become weakness or liability that propels companies in the unexpected direction (Ghemawat, 2013, p. 80). This paper contrasts the competitiveness view to the resource-based approach and critically assesses the opinion that resources can actually turn into liabilities to pull organisations down, providing examples for both occasions.
Regardless of the success of your company on a national scale, to engage yourself in a successful venture outside of your borders requires several critical elements that one must acknowledge and apply with great care. One of those requirements would be to thoroughly research the cultural environment in which you wish to launch your product no matter how popular and indispensable you believe it might be. In the past, many national giants have hit the wall when introducing a foreign market or launching a new marketing campaign because of the cultural gap they encountered on the other side of their borders. Another way of preventing a flop on an international market is to carefully study the economical past of this country, which might differ quite a bit from the one the company flourished in. In addition to the previous precautions, it Would be advise to make sure that your product will blend seamlessly within the spending habits of the consumers. Overall, meticulous market studies and patience often constitute the way to success on a foreign soil.