• BY Group 6

• : Akshay Uday Chinchankar -19006

• Deepak R -19017
Submitted to Dr R Sugant
• Kishor M -19027

GLOBAL MARKETING • Pushpa Kumari Mandal -19040

• Shreyas C-19050
MANAGEMENT • Vishal V Bharadwaj-19060
 AGENDA
What is Global marketing Promotional strategies

Segmenting And targeting

Branding strategies
Markets

Influence of Culture Distribution strategies

Product Policies Gap Analysis

Pricing strategies Reference

 WHAT IS GLOBAL MARKETING?

• Global marketing can be defined as marketing on a worldwide scale, in different countries,

reconciling or taking commercial advantage of global operational differences, similarities, and
opportunities in order to meet global objectives
SEGMENTING AND TARGETING MARKETS

• Based on the orientations just discussed, companies must segment markets for their products and services and
then decide which to target and how.
• It is done based on demographics, such as income, age, gender, ethnicity, religion, or a combination of
factors
Internationally, there are basic approaches to segmentation
a. By country
b. By Global segment
c. By multiple Criteria
d. Mass Markets Versus Niche market
Demographics:
• McDonald's segments by age, and directs different ads to different segments. The Ronald McDonald ads target children
with products aimed at the younger age groups. Ads for a quick breakfast before work are aimed at the adult segment.
• Proctor and Gamble segments by gender and offers the "Secret" brand deodorant to women while marketing the Rogaine
treatment for hair loss to men.

Income:
• Department store Neiman Marcus, Rolex watches and Rolls-Royce cars target the upper-income market segments of
their respective industries.
MARKET SEGMENTATION
 INFLUENCE OF CULTURE ON GLOBAL
MARKETING STRATEGIES
• Countries differ along a whole range of dimensions, including social structure, language,
religion, and education
• Culture influences advertising, free trade policies, brand effectiveness, localization and
standardization strategy decisions, international negotiation, business relationships,
international business management, consumer behavior and international marketing.
• Due to cultural differences, there is no one best choice of standardization strategy for
multinational companies
 PRODUCT POLICIES: COUNTRY ADAPTATION
VERSUS GLOBAL STANDARDIZATION

Companies have legal, cultural, and economic reasons for altering their products to fit
the needs of customers in different countries. Each is examined in turn below

• Legal considerations :
a. Labeling Requirements
b. Environmental- protection Regulations
c. Indirect Legal Considerations
d. Issues of standardizations
• Cultural Considerations : Religious differences obviously limit the
standardization of product offerings globally.
• Economic Considerations
a. Income levels and distributions
b. Infrastructure
PRICING STRATEGIES

Pricing is more complex internationally than domestically because of various factors

• Government Intervention :
Every country has laws that affect the prices of goods, such as price controls.
Minimum prices are usually set to prevent companies from eliminating competitors and
gaining monopoly positions or may be set simply to maintain an industry.
The WTO, under its antidumping regulations, permits countries to establish restrictions
against any import entering at a price below cost.
• Market Diversity :
a. Pricing Tactics
 A skimming strategy - charging a high price for a new product by aiming first at consumers willing to pay
that much, then progressively lowering the price to sell to other consumers
 A penetration strategy—introducing a product at a low price to induce a maximum number of consumers
to try it
 A cost-plus strategy—pricing at a desired margin over cost
b. Export Price Escalation
 Channels of distribution usually include additional intermediaries because exporters need to contract with
organizations that know how to sell in foreign markets.
 Tariffs and transport are added costs that may be passed on to consumers.
c. Fluctuation in Currency Value
Managers should price to ensure the company enough funds to replenish its inventory and still make a
profit. Otherwise, it may be making a “paper profit”.
d. Fixed versus variable pricing
Companies often negotiate their export prices with the importers.
 PUSH V/S PULL STRATEGY

PUSH
PULL
 Direct selling, no mass media advertising
 Opposite of push
 Intensive use of sales force
 Mass media advertising
 Relatively costly
 Draw customers to products
 Analyse and persuade potential customer
 Generally used when customers know their
 Often used for launching of new products
need
 FACTORS DETERMINING ATTRACTIVENESS OF PUSH AND PULL
STRATEGY
Product type and Consumer Sophistication
 Pull strategy generally favoured by firms in consumer goods that try to sell to larger
segments of market
 Push strategy generally favoured by firms that sell industrial products or complex
products
 Noise
 Dumping
 Predatory pricing

Channel length
More distribution channel, more intermediaries
Direct selling to push product is expensive
Possibility for firms to pull its product through channels by mass advertising to
create consumer demand
Media Availability
 Pull strategy relies on access to advertising media
 Availability of large media
 Firms availability to use is limited in some countries
 Eg: Unilever uses push strategy to sell products in rural India
 Media availability is limited by law in some cases

Push-Pull mix
 Push helps create demand
 Pull marketing offers a way for users to satisfy demand
 Electronic and car dealers often use such type of strategy
 car dealers near festival season advertise or offer cash discount or cash
back offers to customers and dealer incentives which is the
combination of both the push and pull strategies
Pull strategy
• Sign-up options to receive email about the
company and latest products.
• links on the bottom of website to several of
social media accounts 
• Includes several mobile apps
• Nike Soccer, Nike SB, Nike+ Running, Nike+
Training Club, Nike+ Fuel band and Nike+
Move
• Consumers can further explore, see what else
they have to offer and find out more information
about Nike.
• Hash tags or listing it’s website at the end of
commercials
Push strategy
• Selling products in different retail stores
• Commonly found in stores that specialize
in athletic products, shoes or active wear
 BRANDING STRATEGIES

• A brand is an identifying mark for products or services

• A brand gives a product or service instant recognition and may save
promotional costs
• It conveys a perception of whether firms will deliver what they
promise, however the importance is more crucial in countries with
strong cultural characteristics of uncertainty avoidance
• For example, individualistic cultures offer greater advantages in
creating an image of innovativeness than collectivist cultures.
 ADVANTAGES OF A WORLDWIDE BRAND

• Some companies, such as Apple, have opted to use the same brand and logo for most of their products around the
world.
• This helps develop a global image, especially for customers who travelled internationally. In addition, there is
evidence that the use of global brands helps identify companies as global players
• Companies benefit from global branding through the economies of scale. That is, companies can use the exact same
advertising strategy worldwide using the same images, celebrities, and even advertising firms.
• The quality of the branded product is better, or at least consumers generally believe it to be better.
• Prices of branded products are fixed by the companies themselves and there are no frequent changes.
• The companies that own the branded products are clearly responsible for their quality and usefulness.
DISADVANTAGES OF A WORLDWIDE BRAND

• Expensive
• Shipping customs and duties
• Language
• Intellectual property theft
• Political risk
 • Is the means by which the product is delivered by
the firm to the consumer.
• The choice of a Distribution system varies form firm
DISTRIBUTION to firm

STRATEGY The below are the four main differences between

distribution systems worldwide:
• Retail Concentration
• Channel Length
• Channel Exclusivity
• Channel Quality
TYPICAL DISTRIBUTION SYSTEM
 RETAIL CONCENTRATION

• It is basically classified as Concentrated Retail System and Fragmented Retail System.

• Concentrated Retail system is where very few retailers supply most of the market and in
Channel Length
Fragmented retail system there are many retailers but none has the major share of the market
• Channel Length refers to the number of intermediaries between producers and the consumers.
• The most important factor for choosing a channel length is the degree of which the retail system is fragmented.
• Fragmented the retail system , it is more expensive for the firm to make contact with each individual retailer.
• When the retail sector us contracted , the firms deal concentrated retailer and cutting out wholesalers.
• Entry of Large Discount Superstores is another reason for shortening channel length.
Channel Exclusivity
• An Exclusive distribution channel is difficult for an outsider to access
• It is difficult for new firms to get access to shelf space in supermarket
Channel Quality
This refers to the expertise , competencies and skills of established retailers in a nation and their ability to sell and support
products of international brand

Choosing a Distribution Strategy:

• Which channel the firm focuses on to reach potential consumer
• The Aim is to ensure that the prices do not get too high as a mark up by multiple intermediaries.
• The benefit of longer channel is it cuts selling cost when retail sector is very fragmented.
• Longer channel is market access – the ability to enter an exclusive channel.
Starbucks Strategy :
•Sells through licensed retail shops and speciality sales group , super market and grocery market
•Partnership with grocery giant Kraft food Inc. in 1998
•Gained entry into 25000 US super market
•One of their strategy is to represent them as the third place between home and work
Volvo Construction Equipment (Volvo CE) :
Volvo credits its  elaborate distribution network of spare parts is its backbone for its success in consumer equipment domain
 5 rules which they follow for efficient distribution system:
•Reach most remote location
•Strong logistic network
•Using Technology
•Prioritize order
•Low carbon transportation
 GAP ANALYSIS OF NESTLE:
Criteria As- Is
 The product quality of Milkmaid as well
as other products that are sold by the
Product Quality company is premium and  so the products
are much more expensive than that of the
local products in the market of India
 The company Nestle is  not an Indian
Level of familiarity product the company is based in
Switzerland  so many of the consumers in
India are not familiar with the products
To- Be
 The company Nestle must be able to sell
the products in the market of India and for
this the prices must be set at par with the
local products so that the company is able
to capture a large market share
 The company Nestle must make the
product familiar among the people of India
as they are not much ready to accept a  new
product in the market
(resistance to change)

Demand for the Product
Nutrient potentiality of the product
Sales of the Product
 The demand for the product by Nestle is
very less  as this is a  foreign product and
 The company need to see that the product is
people they are likely to avoid it treating it
a more familiar in the Indian household.
an product that is used by the upper class of
the Indian society
There is a need to enrich the quality of the
There is a lack in the quality of the product that
product so that the taste and preferences is as
is produced by Nestle.
per the Indian consumers.
 The sales in the developing countries are  The company want to cover the entire market
restricted. The share in the developed country in India so that it can increase the sales of the
is more than the undeveloped country product in the country
 RECOMMENDATION FOR IMPROVING THE GAP OF NESTLE
COMPANY

• . A brand with a very attractive content will make a powerful impact on the customers and they would be able
to get more benefits from the product (Kelly, 2011).  The company can use the Info graphics so that the
brand is represented in terms of the bright and colourful displays. This will be helpful in making the product to
be shared across a wider audience. This will be a great tool for brand building and for leading in the market
(Jolibert, 2012).

• Since the company is, a Switzerland based company and to make it familiar with the Indian audiences there is a need
for the company to go for local partnerships. The company when partners with the local business can hold some
seminars and festivals. When Nestle they try to sponsor the local projects or donates in charity then they can gather the
trust of the people (Chernev, 2012).
 RECOMMENDATION FOR IMPROVING THE GAP OF AMUL

 The production amount by the company Amul is not sufficient to cater the demand there is a need for the company to upgrade the
technology standards, making changes in the system of the management and many more.

 There is a need for a quality assessment stage before the product is taken into consideration in the market.

 When there is tracking of the quality, there is a need for the company Amul to define properly the quality. The way to get the
measurement of the satisfaction of the customers is through the net promoter score.

 There is a need for the company Amul to market its product in India as well as abroad. The marketing expenditure is very poor by the
company this needs to be boosted so that the products are available in every corner of the country India
 REFERENCES

• https://www.researchgate.net/publication/235299548_Understanding_the_new_bases_for_global_market_segmentation

• https://www.researchgate.net/publication/320775259_The_Influence_of_Culture_on_Global_Marketing_Strategies_A_Confirmatory_Study

• https://www.researchgate.net/publication/320775259_The_Influence_of_Culture_on_Global_Marketing_Strategies_A_Confirmatory_Study