Eprg model
- 1. NEELU HEMBROM MRINAL TIBREWALLA FRANCIS DAS MARK CALVERT
- 2. Different attitudes towards company’s involvement in international marketing process are called international marketing orientations. EPRG framework was introduced by Wind, Douglas and Perlmutter. This framework addresses the way strategic decisions are made and how the relationship between headquarters and its subsidiaries is shaped.
- 4. Management orientation – Home country orientation Characteristics – Overseas operations viewed as secondary & primary means of disposing the surplus production Domestic techniques & personnel superior to foreign & most effective in overseas market Domestic marketing mix is employed without major modifications in overseas market All foreign marketing operations are planned & carried out from home base & overseas marketing administered by export department
- 5. Marketing strategy – Extension of domestic strategy to foreign market Companies’ basic objective – Profitability Type of governance – Top-down Culture - Home country Technology - Mass production HRM practices – Overseas operations are managed by people from home country Managerial predisposition - Manager/MNC rely on values & interests of parent company in formulating and implementing strategic plan
- 6. Merits – No cost & efforts needed for adaptation/localization It is an easy route to internationalization when foreign market exists with similar domestic characteristics Demerits – No full exploitation of IB opportunities worldwide Main focus on domestic market
- 7. Nissan’s ethnocentric orientation was quite apparent during its first years of exporting cars and trucks in United States. Designed for mid Japanese winters, the vehicles were difficult to start in many parts of the US during the cold winter months. In northern Japan many car owners would put blankets over their hoods of their cars and they expected Americans would do the same.
- 8. Robert Bosch GmbH, or Bosch, is a German multinational engineering and electronics company headquartered in Gerlingen, near Stuttgart, Germany. It is the world's largest supplier of automotive components measured by 2011 revenues, It proudly believes in German engineering and promotes its products with same approach.
- 9. POLYCENTRIC Management orientation – Host country orientation Perception about market – Each national market is distinctive Focuses on differences between home country & foreign country Marketing strategy – Localization / adaptation Companies’ basic objective – Public acceptance
- 10. Type of governance – Each local unit sets objectives (bottom up) Culture- Host country Technology - Batch production HRM practices – Local nationals are used in key management positions Managerial predisposition - MNC tailor strategic plan to meet the need of local culture
- 11. Characteristics – Recognize importance of inherent differences in overseas markets Subsidiaries are established in overseas market & each is independent with own marketing objectives & plans Local techniques & personnel best suited to deal with local market conditions International marketing organized on country to country basis with separate marketing strategy for all
- 12. Merits – Adaptation to market characteristics help in better understanding of local needs which will lead to better exploitation of market potentials Demerits – High cost of national responsive marketing mix for each country Delay in localization
- 13. McDonald’s McDonald’s strategy to serve veg burgers in India instead of non- veg burgers (pork and beef) to its Indian customers can be termed as polycentric.
- 14. Gerber When Gerber, a Nestle owned purveyor of baby foods first started selling their baby food in Africa, they used the same packaging as in the USA – with the cute baby on the label. Later they found out that in Africa companies routinely put pictures on the label of what is inside the package, since most people cannot read.
- 15. REGIOCENTRIC Regiocentrism is a transitional phase between polycentric and geocentric orientation. Firm accepts a regional marketing policy covering a group of countries which have comparable market characteristics. Operational strategies are formulated on the basis of the entire region rather than individual countries. The company views the similarities and differences between regions.
- 16. REASONS FOR MAKING USE OF A REGIOCENTRIC APPROACH Facilitates the interaction taking place between local national executives transferred from operations in the region to regional head office, and executives transferred from the parent company to the regional headquarters. Shows some level of sensitivity towards local conditions in the host-country Can be utilized as a transitional step where the multinational organization wishes to develop from a purely ethnocentric or polycentric approach to a geocentric approach
- 17. ADVANTAGES DISADVANTAGES Culture fit Lack of Understanding between managers at various levels Less cost is incurred in hiring the natives of the host country. There could be a communication barrier The managers work well in all the neighboring countries within the geographic region of the business Lack of International Experience. The nationals of host country can better influence the decision of managers at headquarters with respect to the entire region. It may lead to the confusion between the regional objectives and the global objectives
- 18. In the 1950s, Pepsi reportedly lost its dominant share of the beverage market in at least one southeast Asian country after changing its vending machines and coolers from a deep regal blue to light ice blue. Light blue is associated with death in that region, and Pepsi’s subsequent loss was competitor Coca-Cola’s gain. PEPSI Vs. COKE
- 19. Domino’s has a regional approach to serving pizzas which has made it a much bigger brand than its rivals. The company introduced its American Legends line of specialty pizzas in 2009, featuring 40% more cheese than the company's regular pizzas, along with a greater variety of toppings In 2010, shortly after the company's 50th anniversary, Domino's changed its pizza recipe "from the crust up", making significant changes in the dough, sauce, and cheese used in their pizzas In December 2013, Domino's Pizza, in Israel, unveiled its first vegan pizza, which uses a soy-based cheese substitute In 2014, Domino's Pizza in Nigeria introduced the new Jollof Rice Pizza and The Beef Stew Pizza MARKETING EXECELLENCE
- 20. “Coca-Cola Zero provides real Coca-Cola taste for variety-seeking consumers. Coca-Cola Zero is sweetened with a blend of low-calorie sweeteners, while Diet Coke is sweetened with aspartame. As for Coke/Coca-Cola light, in certain countries, the term ‘diet’is not used to describe low-calorie foods and beverages. In these countries, we offer Coke/Coca-Cola light. The sweetener blend used for Coke/Coca-Cola light is formulated for each country based on consumer preference.”
- 21. MTV has catered to local taste in East Asia in South Korea, China, India and Japan. E.g. MTV broadcasts on two channels with Chinese music in China and Hindi pop in India. Using joint ventures with local partners, channels are branded accordingly as MTV India, MTV Korea, MTV China and MTV Japan and use more local employees with use of local language.
- 22. CENTRIC
- 23. GEOCENTRIC The geocentric orientation represents a synthesis of ethnocentrism and polycentricism into a ‘world view’ that sees similarities and differences in markets and countries, and seeks to create a global strategy that is fully responsive to local needs and wants. It displays the “think global, act local” ideology.
- 24. Standardization or Adaption? Standardization • Assumes homogenous markets and in response offers standardized products and services using a standardized marketing mix Adaption • Takes into account the inherent diversity in the global marketplace and adapts the marketing mix to fit the local culture, preferences, laws and rules, infrastructure and competition
- 25. Companies that operate in foreign markets should have eclectic abilities to seek integration, sensitivity and learning on the global scale at the same time, and standardization and adaption should not be evaluated as approaches that cannot be coordinated. REALITY
- 26. Workers in an African port saw the “Fragile” symbol and presumed it was broken glass, threw it all in the sea ‘Turn It Loose’ Slogan Translated into Spanish, it read "Suffer From Diarrhea."
- 27. McDonald’s offers beer in Germany, wine in France, mutton pies in Australia, Veggie McNuggets in India, Teriyaki Burger in Japan, McLaks in Norway Some if its local favorites around the world include the McItaly burger in Italy, Maharaja Mac in India, the McLobster in Canada, the Ebi Filit-O in Japan
- 29. Asian Delight (Thailand) HLL identified the importance of rural customers and invented the shampoo sachets priced at almost a rupee which were an instant hit.
- 30. CONCLUSION As brands go international—in some cases as we have seen above—brand managers can forget that simple truth. That is, know your market. Cross cultural marketing is simply about using common sense and analysing how the different elements of a brand are impacted by culture and modifying them to best speak to their target audience. Many international companies have had problems with expanding their brands worldwide because they have failed to put in the research and effort necessary to understand the culture. This has lead to several failed brands, to offended consumers, and to the loss of millions of dollars that comes with having to start all over again.
- 31. THANK YOU