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Nestles Multidomestic Strategy. Germany. Switz. France. U.S. Nestle 1983 Structure. Marketing Activities. Strategy: Multidomestic vs. Global How standardized or localized should the marketing program be? HQ Influence

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Nestles multidomestic strategy l.jpg
Nestles Multidomestic Strategy

Germany

Switz.

France

U.S.



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Marketing Activities

  • Strategy: Multidomestic vs. Global

    • How standardized or localized should the marketing program be?

  • HQ Influence

    • What is appropriate level of HQ intervention in decision making – degree of “centralization”??


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Centralization and Standardization

The extent to

which activities

are the same

across national

units.

Forces?

The extent to

which activities

are differentiated

across national

units.

Forces?

Centralized

HQ Influence

Decentralized

Standardized

Localized

Strategy


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Product Names

  • Coca-Cola in Chinese: “Bite the wax tadpole”

  • Castlemain XXXX lager in US: “Fourex (condoms)”

  • Olympia ROTO copiers in Chile: “broken” or “low-class”


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Marketing

  • In India it’s the Taj Mahal (a mausoleum); in New York it’s the Helmsley Palace

  • United Airlines ad in Australia: Crocodile Dundee camps it up (…means Dundee flaunts his homosexuality)

  • Guinness is good for you ...attracts pregnant women as key customers


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Centralization and Standardization

The degree to which HQ has

decision-making authority.

Forces for centralization??

Centralized

HQ Influence

The degree to which each country

has decision-making authority.

Forces for de-centralization??

Decentralized

Standardized

Localized

Strategy


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Levels of HQ Influence

Directing

Approving

Coordinating

Persuading

Informing

Ignoring


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Nestles Marketing Integration

Branding

Price

Packaging

Centralized

Product

Advert.

HQ Influence

?

Promo.

Decentralized

Standardized

Localized

Strategy


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Managerial Roles

  • Product Manager

    • Strategist, architect, coordinator

  • Country Manager

    • Sensor, builder, contributor

  • Functional Manager

    • Specialist, cross-pollinator



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