30/11/2015

GlocalizationExamplesThinkGloballyandActLocally

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Business and Management Case Studies

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Feb10,2010

Glocalization Examples Think Globally

and Act Locally

RECENT CASES

Wehaveheardalotaboutglobalismversuslocalismovertheyears.Inorderto
succeedglobally,eventhebiggestmultinationalsmustthinklocally.Afewexamples:

NikeERPImplementationSaga

ApplesInnovationStrategy

DellFromDirectSalestoChannelStrategy

McDonalds
IntheUK,McDonaldsstrategyistolistenmoretolocalconsumersandthenactonit.
Thecompanystrivestodothisaroundtheworld.Someifitslocalfavoritesaroundthe
worldincludetheMcItalyburgerinItaly,MaharajaMacinIndia,theMcLobsterin
Canada,theEbiFilitOinJapan.

TescoEntryandExitfromJapan
NandanNilekani
FromInfosystoPolitics

AWARDS/RECOGNITION
OneofourcasestudiesNandanNilekani

McDonaldshasnoveltyitemsonitsmenuinJapanliketheTeriyakiMcBurgerwith
SeaweedShakerfries,EbiFiletO,CroquetteBurgerandBaconPotatoPie.McDonalds
signedmodelYuriEbihara(knownasEbichaninJapan)tomarketEbiFiletO.Ebi
meansshrimpinJapanese.

FromInfosystoPoliticswasselectedtobeused
forthe2010InternationalLeadership
Association(ILA)StudentCase
Competitionheldatthe12thAnnualILA
GlobalConferenceLeadership2.0:Timefor

Starbucks
Starbucksistryingoutlocallydesignedfranchisesinstores.Thestoresarenon
Starbucksbrandedinordertorecapturethefeelofalocalcoffeeshop,whichwould
otherwisebethreatenedbytheexistenceofStarbucksinitsvicinity.

KFC
Toincreasevisitsfromlocalresidents,KFChasinitiatedafiveyearplantoupgradeits
UKrestaurantswithnewcontemporarydesigns.Designswillbebasedonlookand
feeloftheareaandincollaborationwithlocalpropertydevelopers.
KFChasavegetarianthali(amixedmealwithriceandcookedvegetables)andChana
Snacker(burgerwithchickpeas)tocatertovegetariansinIndia.

Action(2730October2010)inBoston,MA,
USA
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Tesco
WhenTescoexpandedgloballyincountriessuchasThailand,HungaryandtheCzech
Republicitkeptitsusualnameandbranding.However,whenitenteredtheUnited
States,itnameditsstores"Fresh&EasyNeighborhoodMarket".

Nokia
Nokiarespondedtolocalcustomerneedswiththeintroductionofdustresistantkeypad,
antislipgripandaninbuiltflashlightforIndianruralconsumers(specificallytargeting
truckdrivers).

Hindustan Lever Limited (HLL)

HLLidentifiedtheimportanceofruralcustomersandinventedtheshampoosachets
pricedatalmostarupeewhichwereaninstanthit.

Ford
In1904,FordwasoneofthefirstautomotivecorporationstogoInternationalwiththe
openingofFordMotorCo.ofCanada.EvenHenryFordIIhadopinedthatinorderto
furtherthegrowthofitsworldwideoperations,anypurchasingactivityshouldbedone
afterconsideringtheselectionofsourcesofsupplynotonlyinitsowncompanybutalso
sourceslocatedinothercountries.WhenFordhadsetupitsfirstplantoutsideU.S.,in
Canada,itgainedconsiderablyfromthegeographicandculturalproximity.

Viacoms MTV localized strategy with localized programming

MTVhascateredtolocaltasteinEastAsiainSouthKorea,China,IndiaandJapan.E.g.
MTVbroadcastsontwochannelswithChinesemusicinChinaandHindipopinIndia.
Usingjointventureswithlocalpartners,channelsarebrandedaccordinglyasMTVIndia,

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GlocalizationExamplesThinkGloballyandActLocally
MTVKorea,MTVChinaandMTVJapanandusemorelocalemployeeswithuseoflocal
language.

Whirlpool Corporation
WhirlpoolExample1:Domesticappliancemaker,Whirlpoolincorporatedspecially
designedagitatorsintoitswashingmachineswhenitsoldtheminIndia.Thishelped
Indianwomenwashsariswithoutthefivefootlongsarigettingtangled.Whirlpool
formedajoinedventurewithalocalpartnertoproducetheredesignedwashingmachine
tosuitlocaltasteandculture.Whirlpoolalsomakesitsrefrigeratorsinbrightcolorslike
redandblueasmanyAsianconsumersplacedtheirrefrigeratorinlivingroomsasasign
ofstatus.Whirlpoolbelievesinstandardizingworldwidewhatitcanandadaptingwhatit
cannot.
WhirlpoolExample2:AspartofWhirlpoolsglobalstrategy,thecompanywantedto
developproductsbasedonconsumerstastesandneeds.Whirlpoolhaddoneextensive
researchandfoundthatEuropeancustomerswantedamicrowaveoventhatcouldbrown
andcrispfood.WhirlpoolthendesignedandintroducedtheVIPCrispwavewhichcould
frycrispybaconandcookapizzawithacrispcrust.TheproductwassuccessfulinEurope
andlaterlaunchedinU.S.aswell.

KFC Yum! Restaurants

Globalchain,KFChasintroducedKrushersinthecoldbeveragessegmentinIndia.The
rangeofflavorsofKrushershasbeenalteredtosuittheIndiantastebuds.

Subway
TheSubwaychaindoesnothavebeefinitsstoresinIndia.

Taco Bell
TheTacoBellmenuinIndiahascrunchypotatotacosandextraspicyburritosfilledwith
paneer(cottagecheese).TacoBellhashiredemployeeswhoexplainwhatburritosand
quesadillasaretocustomersinIndia.

Coca Cola
In1955,aCocaColaadvertisementordocumentary(almost20minslong)referredtoas
thePearloftheOrientshowsCocaColaspopularityinPhilippinesandhowCokehas
mergeditselfintothePhilippineseconomyandculture.

Heinz
In2010,HeinzplanstolaunchpackagedfoodproductsinIndiawhichwillsuittheIndian
taste.Heinz,whichenteredIndiain1994,planstoIndianisetheflavorsoffering
condiments,juicesandsnackstotheIndianconsumers.

DisneyLand Glocalization in Hong Kong

In2005,DisneylandwasnotthatsuccessfulinHongKongwithparkattendanceand
growthrevenues.DisneylandthenmadeanefforttocatertothelocalChinesetasteby
reducingprices,adaptingtolocalChinesecustomsandlaborpracticesandalsochanged
thedecorsandsettings.GlocalizationwassuccessfullyappliedtothethemeparkinHong
Kong.

Dells Advertising in Japan and Asia Pacific regions

DelldidnotuseitsAmericanStevenJackson(referredtoastheDellDude)commercials
inJapanandotherEastAsiancountriesafteritsGlobalBrandManagementteamused
localizedfocusgroupstogaugetheTVcharactersculturalacceptance.Theattitudeofthe
AmericancharacterdidnotgelwellwithJapanesesocialetiquettee.gKnowalldisplay
andspeakingtostrangerswithoutintroduction.

Unilever Marginal Local Adaptation instead of Total Local

Adaptation
Unilevertookglocalization(localadaptation)toanewlevelinthe1990s.Insteadof
adaptingproductsunnecessarily,itadaptedproductstothelocalmarketmarginallyi.e.
thebasicproductwouldbefinetunedinsteadofexpensivetotaladaptation.E.g.
Unileveridentifiedtheneedforaregionalicecreamandwasverysuccessfulwithits
WallsicecreamadaptingitspecificallytotheAsiantaste(differentfromtherestofthe
world).In2000,ithadamarketshareof41%toNestles15%.
AnotherUnilevericecreambrandAsianDelightwasverysuccessfulinAsia.Unilevers
Bangkokinnovationcenterredesignedtheproductandadaptedittolocaltaste(coconut
icecreammixedwithfruitsandvegetablesusedtraditionallyinsweetsintheregion)and
packaging(ThaiandEnglishonpackaginginThailand).

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GlocalizationExamplesThinkGloballyandActLocally

Italian Luxury Fashion Retail Brands

LuxuryretailbrandslikeBottegaVeneta,aunitofPPR,andCanali,anItalianmens
fashionbrandlaunchedlimitededitionofclutch(KnotIndia)andclosedneckjacket
(bandhgalawornbyIndianmen)specificallyfortheIndianmarket.

Nokias multi-SIM devices in the Indian market

NokialaunchedmultiSIMdevices(C1&C2series)inIndia,afteritrealizeditspotential.
NokiasdualsimphoneswereintroducedlateinthemarketaftercompetitorsLGand
Samsungalsointroducedsimilarmobilephones.Nokialostoutonearlymarketshare(to
competitorswhointroducedmultisimdevicesearlyinthemarket)butplannedto
introduceitinotheremergingmarketsaswell.

Lenovos LES Lite stores in the Indian market

LenovoIndiahascustomizedLESLitestorestoexpandintoIndiaskeytier35
cities/towns.TheseLitestoresaresmallerversions(around150250squarefeetinsize)
ofLenovosexclusivestoresandwithlowercosts&breakevenpoints.

Gillettes low cost razor for the Indian market

GilletteintroducedthelowcostrazorGilletteGuardpricedatabout15rupees(~$0.33)
intheIndianmarket.Featuresincludedeasyrinsing(aswaterisscarceinIndianrural
areas)anduniquegripdesign(thewaytheconsumerheldtherazor).

Piaggios Scooter Vespa adapted for the Indian market

In2012,Piaggio&C.S.p.A.,theiconicItaliantwowheelerreenteredtheIndianmarket.
ItadapteditsscootertheVespatosuittheIndianridersandroadconditions.E.g.therear
wheelstructurewasredesignedtofacilitateeasiertyrechanges,thescooterismore
efficientthanitisinEurope(62kmperlitrecomparedto35inEurope),increasedground
clearance,slimmerdesignandalowerfootboardtogivemorelegroomtoIndianwomen
whoridesittingsidesaddleinthebackseat.

Starbucks India
StarbucksfirstshopinIndia(openinginOctober2012)willhavenobeeforpork
consideredtaboobymanyIndians.TheIndianmenuhaslocalfavoriteChaiTeaLatteand
thecoffeeissourcedandroastedlocally.Otherfooditems(manymeatfreeoptions)
includebakedgoodslikeKonkaniTwistorChatpataParathaWraptoadaptitsofferings
tolocalvegetariantastes.Thereareevenseparateovensandcountersforvegetarianand
nonvegetarianofferings.

SWOT Analysis

Wal-Mart in India

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