International Marketing Essay
1 - International Marketing Essay introduction. The article states that “global demand grows for American-style breakfast foods” and “consumers across the globe are acting more like Americans. ” If true, why is this happening? 1. Above statement is very true itself as global demand for American style breakfast is grew up and more and more consumers are act like Americans or adopting western culture. The major factor behind is globalization. Due to globalization companies have access to global market and more customers to sell their products from western countries to developing countries.
As markets open up, and become more integrated, the pace of change accelerates, technology shrinks distances between markets and reduces the scale advantages of large firms, new sources of competition emerge, and competitive pressures mount at all levels of the organization. Second most affecting factor is advertising of product in developing countries according to their culture and using most popular ways to attract consumers towards the product like using Hollywood or Bollywood actress or actor promoting their products. Promoting these breakfasts as healthier than any other breakfast around the world.
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Other most affecting factors are western culture popularity in eastern countries which is kind of status for them to follow the western culture. Moreover Americans are most powerful economy of the world and every one want to follow them. In addition, western breakfast is faster than the traditional breakfast and where majority countries are becoming polychronic society to monochronic society. 2. The global competitors’ marketing strategies, described in the article, are classic examples of a “global marketing” approach, as explained in chapter 1 of our textbook. Discuss the key elements of each company’s arketing strategy, as noted in the article, and explain how each one demonstrates a global approach to marketing. 2. A global marketing strategy (GMS) is a strategy that encompasses countries from several different regions in the world and aims at coordinating a company’s marketing efforts in markets in these countries. A GMS does not necessarily cover all countries but it should apply across several regions. A typical regional breakdown is as follows: Africa, Asia, and the Paci?c (including Australia) Europe and the Middle East, Latin America, and North America.
A ‘‘regional’’ marketing strategy is one that coordinates the marketing effort in one region. A GMS should not be confused with a global production strategy. Outsourcing and foreign manufacturing subsidiaries, common features of a global production strategy, can be used with or without a GMS for the ?nished products. (Johansson, 2010) PepsiCo’ Marketing strategy: PepsiCo enter in India’s market, launching a product by its brand name Quaker Oats. They launched their products in 2006 in India. It has a national presence and has a range of Quick Cooking Oats.
Their main marketing strategy is to make affordable to all consumer so at lest they try it once so they are considering the price factor in their marketing which is main factor in Indian market where an average daily income is below US$3. 00 a day. Another strategy will to try and run special offers to promote these cereals so consumer will try it. In addition, they will promote cereals healthy and affordable health products. Moreover they offer in small travel packs of cereals and keep the low price so consumer can afford it. Kellogg Marketing strategy:
Kellogg’s marketing strategy in basic on product and it new innovated products for different regions world-wide. * Offers a brand – differentiated pricing * Invest in new product research * Brand Building * Cost structure reductions * Product Developments Constant innovations Introduction of new product to present consumer * Market Development Maintain global leader position * Diversification Introduction of new products to fit new customers needs Cereal Partners Worldwide Marketing strategy: CPW is a joint venture of General Mills and Nestle. Their market strategy is based on following: * Global advertising
Creative ideas that travel well * Media Purchasing Participation in Nestle Media Review * Promotions Bundling markets; Partnering with General Mills * Sales Force Selling in combinations with Nestle * Global core brands * Geographic and channel Expansions * Innovative Product line 3. The companies believe they are responding to the needs and wants of the consumers in each country. However, the traditional breakfast foods were serving these societies well. So, what makes the cereal companies think they can improve on the current traditional offerings? 3. Ready-to-eat cereals represented the leading market segment, generating almost $24. billion in 2010 to account for more than 87% of the overall market in terms of value. Market growth is expected to accelerate to exceed a yearly rate of 4% between 2010 and 2015, when it should generate more than $34 billion. (Market line, 2010). * Developing countries have large number of consumers and more consumers mean more possible business in that Region. * Western Influence on developing countries which leads to more consumer demands. * Promoting as healthy diet with traditional taste * Convenience: Faster as in time saver, healthier, affordable price, on the go eat breakfast. 4.
One could argue that the cereal companies are not responding to the needs and wants of the consumers in each country, but rather are exhibiting remarkably ethnocentric –behaviour as they try to “ram something down the throats” – literally! – of people in some countries, for example in Indonesia. Furthermore, consumers in some countries cannot afford these cereals so it is difficult to believe that the strategy will be profitable. What do you think? Do their marketing strategies make good business sense, both from a social responsibility point of view and from a profit point of view? Why or why not? . Social responsibility aspect: As cereal companies responding to local needs they basically do their research on local culture, religious belief, consumer needs to provide healthy diet with cheaper price to their consumer. In addition they provide their consumer health related news to how to keep avoid health issue away to live a good and healthy life. They are responding their CSR indeed. For any companies it hard to satisfy each consumer needs because responding to each consumer requirement is impossible at all. On the basis of commonly need product they respond and try to satisfy consumer needs.
Profit Point of View: As this point of view no companies will survive in global market without marketing strategy to compete with their rivals and to grow up. Before entering in any market companies need to research their basic need of customers they can’t jump directly with their present product line as no market is same itself. To launch a product, pricing, place and promotion they need strategy to attract consumer towards product and compete against local brands available in market. To sum up, every company must have a strategic marketing plan to respond weather it is to their CSR or profit point of view.