Nestles Multidomestic Strategy Germany Switz. France U.S.
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”??
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
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”
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
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
Levels of HQ Influence Directing Approving Coordinating Persuading Informing Ignoring
Nestles Marketing Integration Branding Price Packaging Centralized Product Advert. HQ Influence ? Promo. Decentralized Standardized Localized Strategy
Managerial Roles • Product Manager • Strategist, architect, coordinator • Country Manager • Sensor, builder, contributor • Functional Manager • Specialist, cross-pollinator