Introduction-

Brands in the current globalized world signify more than just products with recognizable

logos. Brands have transcended the commodity trap and have seeped into people’s lives

in many recognizable ways. Brands succeed if they offer opportunities to the customers

for self-expression. Being global brands with entrenched identities and personalities and

still able to adapt to local taste and preferences is a daunting task. That is why all the

forces came together and invented a new term, a new strategy, into already integrated

resources in the world, created a completely new discipline with giving utmost

importance to local culture, needs and values. And the very term is 'Glocalization', which

first started appearing among academic circles during the late 1980s, combines the words

'globalization' and 'localization'.

If you look at Glocalization as a dialogue between the global and local sectors, you get a

good understanding of its challenges and potential benefits. With Glocalization, a global

corporation's goal isn't to say, "Here's a sandwich." Rather, the corporation asks, "How

can we make a sandwich you'd like?" When Glocalization and culture connect, local

communities play crucial roles in developing and sustaining global policies.

Meaning-

‘Glocalization’ is a term that was invented in order to emphasize that the globalization of

a product is more likely to succeed when the product or service is adapted specifically to

each locality or culture it is marketed in. Glocalization is a term derived from the words

Globalization and Localization to emphasizes that the chances of success for global brand

is high, if it can adapt to the cultures, tastes and preferences of local markets. It brings

about a balance between the global and the local, i.e., localizing the global (to meet the

local cultural, linguistic and ethnic preferences and tastes) or globalizing the local (for

global acceptance). Glocalization involves translation, replication and editing of the

global messages/marketing communications befitting the relevant local requirements.

By definition, the term “Glocal” refers to the individual, group, division, unit,

organization, and community which are willing and able to “think globally and act

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locally”, a philosophy the world has accepted to succeed in different markets. The term

has been used to show the human capacity to bridge scales (local and global) and to help

overcome bounded, "little-box" thinking. 'Glocals' is a term often used to describe a new

social class: expat managers who travel often and switch homes often, and are therefore

both global and local.

For instance, Yahoo! is a company that practices glocalization. It markets a portal that is

viewed worldwide and offers different versions of its website (and related services) for

different users. For example, it provides content and language variations in some 25

countries including China, Russia and Canada. It also customizes content to appeal to

individuals in those locations.

Other well know Company famous for its Barbie has adopted Glocalised strategy for

acceptance in India, by manufacturing Barbie Dolls in a completely Indian attire with

sari put on along with other Indian accessories.

Adapting products or services that are available all over the world to make them suitable

for local needs: As an example of the Glocalization of fast food marketing, McDonald’s

in France used Asterix in promotions instead of Ronald McDonald. This organization

sees glocalization as the merging of global opportunities and local interests to reduce the

gulf between rich and poor. The Japanese have been particularly successful at adapting

products to the needs of customers in a given area, a process otherwise known as

Glocalization.

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Evolution of the concept-

The term “Glocalization” originated from within Japanese business practices. It comes

from the Japanese word dochakuka, which simply means global localization. Originally

referring to a way of adapting farming techniques to local conditions, dochakuka evolved

into a marketing strategy when Japanese businessmen adopted it in the 1980s. In the

business world the idea was adopted to refer to global localization. It was also used in the

Global Change Exhibition (opened May 30, 1990) in the German Chancellery in Bonn by

Manfred Lange, the director of the touring exhibit development team at that time. He

described the interplay of local-regional-global interactions as "Glocal", showing the

depth of the space presented and drawn.

Glocalization was popularized in the English-speaking world by the British sociologist

Roland Robertson in the 1990s, the Canadian sociologists Keith Hampton and Barry

Wellman in the late 1990s. Hampton and Wellman have frequently used the term to refer

to people who are actively involved in both local and wider-ranging activities of

friendship, kinship and commerce.

Very often localization is a neglected process because globalization presents an

omnipresent veneer. Yet, in many cases, local forces work to attenuate the impact of

global processes. These forces are recognizable in efforts to prevent or modify the plans

for the local construction of buildings for global corporate enterprises. For example,

Thomas L. Friedman in The World is Flat talks about how the Internet encourages

glocalization, such as encouraging people to make websites in their native languages.

Origin of Globalization-

The globalization of business activities and the term global strategy emerged in the early

1980s. It states that:"Companies must learn to operate as if the world were one large

market - ignoring superficial regional and national differences.”

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There are four groups of variables that propel companies towards globalization, namely

the categories of market, competition, cost, and government. They are sometimes referred

to as the four major globalization drivers.

Four Major Drivers-

The market drivers consist of homogeneous needs, global customers, global

channels, and transferable marketing. Depending on the customer’s need and

wants, many companies set up their business in international markets. If the

marketers do not see potential market, credibility and growth, they create their

own new category.

As a case study,

The cost drivers are categorized as economies of scale and scope, learning and

experience, sourcing efficiencies, favorable logistics, differences in country costs

and skills, and product development costs. That is why many automobile

companies have their own plant in the business country for cost accountability.

As a case study,

The government drivers are classified as favorable trade policies, compatible

technical standards, and common marketing regulations. Many Companies

hesitate entering into the market.

As a case study,

Finally, the competitive drivers consist of the interdependence between countries

and the competitors that globalize or might globalize.

As a case study,

The companies doing business in foreign markets probably do so owing to factors other

than an emerging universality of consumer needs and wants. He points out three possible

reasons for the emerging globalization of business activities in the early 1980s, namely

the access to foreign markets, the increasing degree of international standardization of

products and standards, and the increasing number of worldwide mergers, acquisitions,

and joint ventures. A number of reasons for the globalization of business activities such

as globalizing for internal efficiency, globalizing to compete in homogeneous markets,

and globalizing for added synergies. The indicators for the globalization of business

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activities are proposed to be at the customer level, at the market level, at the industry

level, and at the competitor level. Furthermore, these indicators are independent of each

other, which mean that different levels of globalization may be observed in each area. A

global approach allows companies to achieve concentration and coordination of

activities, which stimulate the companies' efforts for the globalization of business

activities.

As a case study, companies have gone into a joint venture to enter into a gobal or

international market. One such company is Maruti and Suzuki.

Distinction between Global and Glocal (MNC’s) companies

A company's global strategy is closely related to its corporate strategy. The corporate

strategy guides the performance of a company's overall business activities and the

allocations of resources to achieve established business goals.

There is a distinction between the Multinational Corporation and the Global

Corporation. The multinational corporation operates in a number of countries, and

adjusts its products and practices in each, while the global corporation operates with

resolute constancy, as if the entire world, or major regions of it, was a single entity. The

global corporation sells the same things in the same way everywhere.

Like for example, luxury products like watch, cars, computers, laptops, etc are referred as

Global Corporation as they have standardized products rather than adapted to certain set

of people. On the other hand, companies in Food Sector, FMCG sector like ITC, HUL

adapt themselves according to the needs, preference and taste.

Consequently, they also apply a worldwide approach to the term global strategy. Global

competitors exploit the similarities between Countries to enhance the competitive

advantage, while the Multidomestic or Multinational competitors exploit the differences

between countries.

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Experts argue that the adoption of a global strategy may give a competitive advantage. In

contrast to multinational companies, global corporations view the world or its major

regions as one entity instead of a collection of national markets. These world marketers

compete on a basis of appropriate value, i.e. an optimal combination of the marketing

mix that is identical in design and function. The distinction between a multidomestic

strategy and a global strategy:" is that, a multidomestic strategy seeks to maximize

worldwide performance by maximizing local competitive advantage, revenues, or profits;

a global strategy seeks to maximize worldwide performance through sharing and

integration.”

Like for example, Coca-Cola has segmented the market into Rural and Urban and

accordingly set the price for rural and urban. We shall see the pricing strategy later in the

case of Coke.

Characteristic of Multidometic and Pure Global Strategies-

On one hand, the setting for a pure MULTIDOMESTIC (MNC’S) STRATEGY is

characterized by the following:

no particular pattern of market participation;

the product offering is fully customized in each country; that the location of

value-added activities are restricted to each country;

the marketing approach is local; and

the competitive moves are stand-alone by country.

they pursue independent strategies in each foreign market,

their subsidiaries are essentially autonomous operations, and

While they allow headquarters to coordinate financial controls and marketing,

each subsidiary is a profit center with decentralized strategy and operations.

On the other hand, the setting for a PURE GLOBAL STRATEGY is characterized by

the following:

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that there is a significant share in major markets of market participation;

that the product offering is fully standardized worldwide;

that the location of value-added activities are concentrated - one activity in each

different country; that the marketing approach is uniform on a worldwide basis;

that the competitive moves are integrated across countries

A global company operates as an integrated system in which all subsidiaries are

interdependent in terms of operations and strategies. Global strategy represents an

application of a common set of strategic principles across most world markets. When a

company pursues a global strategy, it looks at the world market as a whole rather than at

markets on a country-by-country basis. The term global strategy to represent standardized

products, standardized promotions, and low need for localized marketing and high

advantages of standardized marketing.

For example- of standardization

Global strategy is based upon scanning the world business environment to identify

opportunities, threats, trends, and resources. The term global is to emphasize customer

similarities regardless of the geographic areas in which they are located, but it does not

ignore differences among markets. They mean that these differences have to be

considered when companies perform and implement their business activities. The global

strategy is a process of worldwide integration of strategy formulation and

implementation.

In contrast, a Multi-domestic approach allows the independent development of strategy

by country or regional units. It has five characteristics that are assumed to make a global

strategy work, namely:

head office's familiarity with local conditions,

two-way communication between head office and subsidiaries,

consistent decision-making practices, ability to refute decisions, and

Provide explanations for final decisions

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The overall or the holistic approach of the term global strategy is evident. Accordingly,

the term global strategy implies the focus on similarities, standardization,

homogenization, concentration, and coordination on a worldwide basis. The origin and

the emergence of the global strategy approach and the globalization of business activities

are explored and described in the next section.

Strategic Matrix for Brand internationalization

Global brand strategy: Product categories with high global vocation targeting a globally

homogeneous public, as in the case of computers. Brand strategy is to highly standardize

brand essence as well as executions.

Glocal brand strategy: Products with weak global vocation targeting a globally

homogeneous public. The brand should standardize its essence across markets and adapt

its executions to regional and even local conditions. Global information media with a

unique image based on precision and objectivity adapting some of their executions (e.g.

news presenters, information order) are an example.

Regional brand strategy: Product’s global vocation is weak, and demand homogeneity is

regional, as in the case of food. A different regional brand line should be created for each

region. Adaptations should take into consideration global brand consistency.

Differentiated brand strategy: Product is highly global while demand has regional

characteristics, such as in banking. The brand should standardize its executions,

especially in back office and process, seeking economies of scale, and differentiate its

essence (mainly through communication and brand personality) to meet regional targets.

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Strategic Matrix for Brand internationalization

regional worldwide

Global Corporations/Strategy Vs Glocal Corporation/Strategy-

Benefits & Impacts:

The potential benefits of a global strategy approach and the globalization of business

activities are- cost savings/reductions and the restructuring of international logistic

operations. Furthermore, the advantages may influence the design, purchasing,

manufacturing operations, packaging, and distribution, marketing, advertising, and

customer service, software development, making of standardized facilities,

methodologies, and procedures across locations, cost reductions, improved quality of

products and programs, enhanced customer preference, and increased competitive

leverage.

Some major drawbacks such as reduction of responsiveness to local needs, distance

activities from the customer, increased currency risk, reduction of adaptation to local

customer behavior and the marketing environment, and local competitiveness, all of

which may be sacrificed.

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DIFFERENTIATED BRAND

GLOBAL BRAND

REGIONAL

BRAND

GLOCAL

BRAND

regionalization globalization

Adaptation

Standardization

demand global homogeneity

strong

Product global vocation

weak

If the business objective is to penetrate a local market in a developing region of the

world, then the global strategy would almost certainly require investment at the licensing

or joint venture level. Experts use the concept of global strategy in terms of a

multinational context. Strategic investment flexibility is found to depend on a company's

original entry strategy and tolerance of risk, as well as its assessment of the specific legal

and political environment, industrial conditions, market readiness for its products or

services, competition, and the investment required to establish a sustainable competitive

position.

There are two cases of global strategies in multinational firms. One of the cases is when

the subsidiary is allowed to act as an autonomous unit to maximize its own profits. The

other is when the subsidiary's output level is completely determined by the parent

company to maximize the latter's global profits. Those adopting global strategies aim at

dominance by offering a wide variety of products, while those adopting a segmentation

strategy target a narrow range of products and customers.

"The core of the standardization/adaptation debate in international strategy is the question

of how far, if at all, it is appropriate to design, market, and deliver standard products and

services across national boundaries."

Philip Kotler argues that there are circumstances where a multinational company can gain

benefits through increased standardization of its marketing mix. There are also

circumstances where this strategy would hurt the company. For example, he writes:" ...

The issue can be framed in the following way: “Under what circumstances can a

company in Country X sell its product in Country Y without changing product,

promotion, price, or place and earn a good return ."

The necessary step is to go backwards in terms of a marketing approach that recognizes

local conditions, characteristics, and circumstances and emphasizes the necessity for

matching global strategies with national responses. By following the strategy of think

globally, act locally- changes in the world force us to move away from thinking

domestically and avoiding the pitfalls of inappropriate global standardization and employ

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marketing-oriented approach and take advantage of our understanding of the local

conditions in each one of the world markets.

Accordingly, the necessity of tailoring the global strategy is inevitable or as Porter

writes:"In some global strategies marketing should play the role of tailoring and not

standardizing to support an overall strategic position. In some cases, standardizing

marketing can lead to competitive advantages that support the overall global strategy.”

Companies must value cultural and ethnic diversity, because it is a pragmatic necessity

for any company that wants to sell globally. He concludes:"Going global- It starts with

recognizing that the world has no center ... customers will differ from country to country

and that they will expect you to respect those differences. Learn this or stay at home.

Coca-Cola is always cited as the classic global product. When Coca-Cola introduced its

Fanta orange drink around the world it was willing to adapt - offering a more tart taste in

Germany and a sweeter drink for Italy.”

Evidently, the adaptation may also affect the core product itself of a so-called global

product.

Four localizations are described in terms of the products, the profits, the production, and

the management in order to achieve customer satisfaction. Companies that desire to

expand internationally require managerial adaptation, due to differences between national

cultures. These dynamics have not been used to represent the cultural diversity that may

hinder the work being done to integrate and coordinate efforts as required by global

strategies.

They conclude that four lessons may be learnt, namely the need for integration across

functions and divisions-

the need to manage change,

the need to respect local cultures, and

the need to understand a corporation's culture.

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It is obvious that the term global strategy causes myths and misunderstandings amongst

scholars and practitioners. The term is therefore not suitable, since it contributes to the

overall confusion of corporate worldwide strategies. The term global strategy tends to be

misleading, misused, and sometimes abused. It appears to be a managerial utopia of a

global strategy approach.

Interaction of Glocalization and Globalization-

The term “Glocalization” came into existence just because the word Globalization was

given more emphasis on. If one takes a long-term view of globalization, “locality” or

“local” itself is a consequence of globalization. There are hardly any sites or cultures that

can be seen as isolated or unconnected from the global processes.

Robertson conceptualized globalization in the twentieth century as “the interpenetration

of the universalization of particularization and the particularization of universalism”,

building on Robertson’s framework argued that globalization or glocalization should be

seen as an interdependent process. “The problem of simultaneous globalization of the

local and the localization of globality can be expressed as the twin processes of macro-

localization and micro-globalization. Macro-localization involves expanding the

boundaries locality as well as making some local ideas, practices, institutions global. The

rise of worldwide religious or ethnic revivalist movements can be seen as examples of

macro-localization. Micro-globalization involves incorporating certain global processes

into the local setting. Consider social movements such as the feminist movements or

ecological movements or consider new production techniques or marketing strategies

which emerge in a certain local context and over a period these practices spread far

beyond that locality into a larger spatial and historical arena. Consider print industry or

computer industry with a specific location of its emergence has now become a global

phenomena. Overcoming space is globalization. In this view of globalization,

globalization is glocalization. Globalization “is the reason for the revival of local cultural

identities in different parts of the world”. While in this view local is the provider of the

response to the forces that are global, we argue that local itself is constituted globally.

Some says, globalization is the sum total of glocalization and “Grobalization”.

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“Grobalization” refers to “growth imperatives [pushing] organizations and nations to

expand globally and to impose them on the local”.

Key Propositions-

The main propositions of glocalization are not too different from the main arguments of a

sophisticated version of globalization.

Diversity is the essence of social life

Globalization does not erase all differences

Autonomy of history and culture give a sense of uniqueness to the experiences of

groups of people whether we define them as cultures, societies or nations

Glocalization is the notion that removes the fear from many that globalization is

like a tidal wave erasing all the differences. A number of books and articles on the

subject of globalization give the impression that it is a force that creates a uniform

world, a world where barriers disappear and cultures become amalgamated into a

global whole. The tensions and conflicts between cultures are nothing but the

problems of a transitory phase. Ironically, the phase of transition has been around

for a long period of time. And as we have entered the third millennia many of the

age-old problems of differences of cultures and religion remain.

Glocalization does not promise a world free from conflicts and tensions but a

more historically grounded understanding of the complicated – yet, pragmatic

view of the world.

Shift from Globalization to Glocalization

We have been witnessing a new economic, cultural and political process known as

Globalization, which is universally termed as a new form of capitalistic system.

Globalization is an economic process which integrates global economic activities. It also

creates problems for many cultures across the world, as there is incompatibility between

human relationships and the exploration of resources and optimization of the concept of

competitiveness in a liberalized market environment. In 1962, when Marshall Mc Luhan

introduced his famous concept of world as ‘global village’, he probably could not

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anticipate how fast the process of globalization would proceed. Since that time,

globalization has fundamentally changed aspects of society.

This is very much true for the world of trade and commerce as well because, with

production and distribution increasingly becoming globalized, companies are trying to

make their products and services global to meet the needs of the international community.

This is a manifestation of globalization. A related aspect is localization, which refers to

customization to a specific region. Glocalization- a combination of globalization and

localization- has emerged as a new standard in reinforcing the positive aspects of the

world wide interaction, whether it is in textual translations, localized marketing

communication, or addressing socio-political conditions. Their objective is to serve local

customers through collaborative efforts. Local culture, taste, values, religion and ethnic

issues are simultaneously considered for integration to have a unified solution. In this

way, integrated market provides a platform for the overall process and not just the end

result. Thus, the globalization process may be renamed as a process of Glocalization.

This involves two issues.

Firstly, the regulatory bodies move upward from the national level to international

and downwards to the local level to regional level.

Secondly, commercial activities between the companies are taking place both at

national/regional and international levels.

Focus is also given to the political and economic dynamics of geographical changes and

their implications. The glocalization phenomenon indicates that an important strategic

change has taken place during the last decade which plays a vital role in overcoming

intense ideological, political, socioeconomic and cultural hindrances to globalization.

Local political issues turn into very active socioeconomic and cultural movement against

globalization, where reconfiguration of scale is an important requirement. Both the scales

of economic activities and geographical governance are rescaled by a process of

glocalization.

For example, the great Indian film maker late Satyajit Ray was influenced by Hollywood

films and the art of film making, but he did not want to replicate Hollywood movies in

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Calcutta. His movies were modern capturing local themes which he projected with a

modern art form and technology. Hence it was truly global, or more appropriately, glocal.

Presently, Singapore is establishing linkages with both Bollywood and Indian film

industries as well seeking to play the role of an outsourced location for hi-tech

Hollywood productions. Globalization, like modernization, is often a fusion.

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The shift in the emphasizes has been seen since more than thousand years or so. Earlier,

the emphasize was just given to an individual because during that primitive era, Food,

Sheltar, Clothing was just a basic necessity and it was just for the sake of living.

As many years passed by, humans became more mature to have their own family and to

fullfill all the needs of family by any means possible.

Religion played and is still palying an important role in society.

Toward individual to Family to Community then to Nations and finally to the world. And

that’s how Globalization as a term came into existence.

While many companies were striving to become a Global brands

Reasons for shift towards Glocalization-

Many debates regarding global branding have revolved around the question whether the

global brands should be speaking in one voice in the entire world, or whether they should

adapt themselves to the local expectations and cultures. The tactical strategy for many

brands is to globalize logos, brand names and trademarks, while making product

differentiations at the local markets. But some global brands have done something

extraordinary and achieved the best of both, i.e. acceptance of local brands almost

everywhere they do business, where people can identify themselves with the brand.

The Czechoslovakia shoes manufacturer ‘Bata’ as a brand has achieved exactly this kind

of worldwide local acceptance. The company, which started off as century old traditions

of the one-man cobblers’ workshop, in 1894, had established companies in US, Latin

America and Africa, Asian countries. “Bata” is not just a brand that has gone

international, but it is, in fact, a local brand. People will tell you this in Pakistan, Canada,

India, Australia and Mexico- there are a number of places around the world where Bata

has gone very local.

Majority of the brands which have achieved Glocal status have been around for some

time. “European multinationals, because they went global or multinational before, fast

communications were available, tended to be very much decentralized. They had to allow

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local managers a lot of autonomy in the way they operated. The brands developed locally

(without) centralized global control and weren’t able to take advantage of approaching

the market as being a global market.”

Some brands have also achieved ‘Glocal’ status. In terms of localness of global brands,

Cadbury’s and Maggi Brand take the lead. For many years, multiple countries claimed

that these brands were of local origin. Indians thought Bata was theirs, the Pakistanis

thought the same.

McDonald’s started expanding its business in the global markets in 1967. By 1996,

McDonald’s operating restaurants in more than 25 countries in the world. In comparison

to Bata, McDonald’s became a glocal brand in the liberalized era, when Global

communication has seen tremendous improvement. McDonald restaurant and chain has

made several efforts to localize its men. For example, it offers McAloo Tikki in India,

Mclaks (sandwich made of grilled salmon) in Norway, McLobster roll in parts of Canada,

etc.

A significant ideological backlash against ‘all powerful’ global brands means that a

strong local flavor will favor the acceptance of global brands. For international brands,

this means paying the careful attention to the mood on the street, and making sincere

attempts to tie this mood back into brand experiences and products. Although, global

brands will not seek to change themselves completely to cater to each market, rather they

will like to integrate effectively with the local markets. However, there may be several

hindrances in the local markets, and global brands trying to go follow local trends

blindly, may face considerable problems. Local adaptation of the brands may require

many issues to be taken care of, rather than only creating a feel good factor for the brand.

In Germany, for example ‘The Great American coffee’ outlet was opened and it failed

miserably because the Germans have a biased attitude towards American brands, and

they failed to recognize that.

In addition to the stringent rules and regulations of local governments, sustainable

development of the brand is important considering the well being of the local society and

also the brand. Like in India, It is compulsory for the international brands, doing business

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in India to have themselves registered adding Indian name to it. For example, Many

International brands have changed their names to Leher Pepsi, Hindustan Unilever, and

Hindustan Coca-Cola.

Society and local people will expect positive initiatives from the global brands for fruitful

integration with the local people and opening up of the brand touch-points through

community involvement. Any global brand that is not taking interest in interacting with

the local community at its level may miss the opportunity for the growth. Like for

example, many MNC’s like HUL, Coca-Cola, ITC are into CSR (corporate Social

Responsibility), focusing on rural development, et al. The brand’s growth will have to be

led through the development and maintenance of the appropriate brand touch-points.

Global brands try to harness their resources in a way that they can continuously deliver

good brand experience, while simultaneously maintaining the bottom line. Each brand

gets its position based on its merit and differentiation capability in the global market, and

the local business gains momentum drawing upon the brand’s differentiation, operational

efficiency and experience of the customers.

In the Glocalized market, it is expected that every major brand under the sun will jump

on the hip-hop bandwagon and expect the youth to get associated with media’s

interpretation of their lives and be promoted through ‘buzz branding’. Today, ‘youth

information delivery’ companies are selling their experience and understanding of

emerging youth culture concepts and ideologies to global marketers for the specific local

markets. Brands targeted to the youth and the companies providing information to them

should have some balance between brand integrity, social acceptance and value for

money to make themselves acceptable among the local market youth. Like, recently Pepsi

came about with the youth oriented ad campaign with the slogan- ‘Yeh hain youngistan

meri Jaan’.

Localization strategies of global brands

Glocalization has been a savior for many companies chasing diverse markets, though it

cannot be a universally applicable concept. Glocalization is a strategic route adopted by

organizations determined to lead and conquer markets beyond their cultural and

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geographical boundaries. Organizations that have managed to efficiently align and

synergize their core global vision vis-à-vis their cross border market specific visions and

mission have achieved leadership not just locally but globally. The loudest Glocal

communication of all was done by HSBC: “The World’s Local Bank”. They say that it

defines the distinct personality of the brand. It took HSBC a worldwide research to

understand that though people value international products and services, they question the

global model, and buy products that relate to them as an individual in their “bound

rationality”.

One would much admire and appreciate the global brands around, but when it comes to

buying-in, one would always go in for a nearer brand. HSBC, through its campaign, not

only did overcome this hindrance in the consumers mind, but also effectively created a

difference between itself and even the other global brands.

Positioning & Advertising: The Glocal Way

Glocalization is practiced at multiple levels. In the category of Low involvement

purchases & impulse purchases, Glocalization can be limited at the level of

communication. Take for example Coke. Global brand, global taste, global

communication differentiated with local language. The Classic Coca Cola Enjoy! Ask

anyone to think of few global brands, and Coke would be among the top five. Pepsi,

though a global brand, it is surely not supported by its global communication strategy, but

by its positioning worldwide. “A Brand that stands for nothing, can fall for anything” has

been an effective mantra, for which brands have been aggressive enough to capture mind

space of their respective targeted customers. But, the impact of Glocalization is so much

that even positioning is also going the Glocal way. Look into the recent past

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advertisements of Coca Cola, yes, it’s less of ‘Coca Cola Enjoy’, but Thanda Matlab

Coca Cola, which has been shot with Aamir Khan, posing in different cultures, as a

Hyderabadi, Punjabi, Lucknowi, Bombay-Bhai and as a Gorkha as well. The detailed

view of those advertisements shall be seen in the case study of coke.

If one should take a look at the recent campaign of Mc Donald’s “I’m loving it,”

combined with the “reasons to make a bahana,” no doubt it wouldn’t strike someone who

hasn’t heard of Mc Donald that it is a firang brand, (except by its name)! Rather, one

would be looking at the fellow consumers enjoying it- Indian ishtyle. More so, with the

Pizza Hut range of pizzas. Who in blessed Italia would have conceived the concept of

Tandoori Pizza or Pan Hindustani Pizza? To make it more effective, it was

complemented by aggressive advertising showing the experience of Pizza at an ecstatic

Indian marriage.

It is very interesting to notice how the global brand has become a glocal one here. ‘Pizza’

which was a new concept, first tried its customization of product, then tailored an

appropriate desi (local) campaign, but one gap was left unfilled: The price distance. To

cover this up, soon there was “Pachas ka Pizza,” which means Pizza for 50 (Rupees) is

still yielding results. A perfect illustration of the Law of Marketing: “Price sensitivity and

the perceived Utility/Value of a product play an extremely ‘make or break’ role”.

Effective positioning elements to make the best impact and the maximum results can be

identified from national players’ advertisements. ICICI, for one had much impact by

associating its insurance packages with ‘sindoor’ (vermillion), with the tag line ‘Hum

Hain Na’.

It not only registers in customers mind, but because of the value it holds generates the

necessary impact the marketer wants to make. Chevrolet for one had associated Optra (a

high-end product in India) with Karva-Chouth which probably didn’t work the magic as

must have been expected. Companies come up with many new and creative campaigns,

but very few make an effective advertisement. An effective advertisement is the one

which succeeds in “getting the message across” or “obtaining the expected feedback from

the targeted group or market”.

20

The marketer, when going global, must make a pitch and test its validity and relevance in

every locality of the domain. Going global might not take much effort. But, going Glocal

means a lot of responsibility.

Glocalization often involves a certain degree of trial and error as companies test the

strengths of their products on local consumers throughout the world. For instance, when

Wal-Mart opened stores in Germany, one of the store's signature practices had an

adverse effect on customers. The use of greeters discouraged many German shoppers

who were unaccustomed to such obliging customer service.

Product

Place

Price

promotion

Benefits and Impacts

Impacts- Glocalization takes care of the cultural and social ethos, customs and beliefs,

social taboos etc. of the location. In the macro level, Glocalization can result in the

polarization of cultures benefiting the growth and development of economies. Going

global has become imperative for corporations due to the increasing competition in their

domestic markets. Though globalization had some beneficial effects initially, it has

several disadvantages for the corporations, consumers, local governments and many other

intermediaries. Some authors lament that globalization has made rich countries richer and

the poor countries poorer. In this scenario, glocalization has emerged as a means to

alleviate some of the pestering problems that the world faces due to globalization.

This is certainly a worthy aim, and "Glocalization" may be a good way to get there. Some

commenter’s were not entirely convinced, however. One, for example, suggested that

costs of tailoring services to myriad local regulations might be significant enough cause

negative side-effects. Small countries with restrictive regulations might see Foreign

Service providers simply refuse to serve users in those countries, and big countries with

21

restrictive regulations might cause service providers to adopt those rules generally,

resulting in the same "Stalinization" problem. Big players like Google and Yahoo already

tailor their content at the national level (and, increasingly, at the sub-national level), so

doing so is clearly possible and even sometimes in providers' interest. Still, there must

exist some size of provider for which localization is simply too expensive - that provider

will either opt out of restrictive jurisdictions (hurting consumers there), or will adopt the

most restrictive regulations generally (hurting consumers everywhere else).

Culture is a key factor in breaking down the barriers between peoples and human groups

and as a powerful instrument of balancing the global and the local, through the

valorization and revitalization of local cultures and using the means and opportunities

offered by globalization.

ExaMPLE-?????????

A glocal strategy approach and glocalization of business activities

The introduction of the terms "glocal strategy" and "glocalization" may be a compromise

to improve the present usage of the term global strategy. The glocal strategy approach

reflects the aspirations of a global strategy approach, while the necessity for local

adaptations and tailoring of business activities is simultaneously acknowledged. The

"glocal strategy" concept comprises local, international, multinational, and global

strategy approaches. It differs from the global strategy approach, since it explicitly

recognizes the importance of local adaptations and tailoring in the marketplace of

business activities. In addition, it comprises typically international and multinational

strategy issues.

Accordingly, a local strategy approach recognizes the necessity to consider locally

related issues in the performance of business activities in the marketplace. An

international strategy approach refers to the local strategy approach of business activities

that is in part applicable beyond the home market's boundaries, while a Multinational

strategy approach is applied when a wide selection of foreign markets is targeted through

the business activities. The international and multinational strategy approaches

22

acknowledge also the necessity for local adaptations of business activities in the different

markets targeted. The global strategy approach has an emphasis on the standardization

and homogenization of business activities across existing markets all over the world.

However, the global strategy approach to manage worldwide business activities appears

to be a managerial utopia. Therefore, the concept of glocal strategy is introduced to

provide an improved accuracy of the present usage of the global strategy approach among

scholars and practitioners. The glocal strategy approach also recognizes that there has to

be a balance and harmony between the standardization versus the adaptation, and the

homogenization versus the tailoring, of business activities. The harmony is achieved

since the concept explicitly comprises the spectrum from local strategy issues to global

strategy issues through the "glocalization" of business activities. Glocalization means that

the standardization versus the adaptation, and the homogenization versus the tailoring,

of companies' business activities are optimized. Accordingly, the focus on balance and

harmony are crucial in a company's glocal strategy approach and its glocalization of

business activities.

The Coca-Cola case

The Coca-Cola Company is often mentioned as a global company that possesses a

network of global products and global business activities. In the 1970s and 1980s the

company was moving towards consolidation and centralized control. In the 1990s the

world began to move in a different direction. Globalization forced changes to appear so

fast that many countries could hardly manage the new global environment.

The Coca-Cola Company sees itself not as a global organization, but as a multi-local

enterprise. The historical strength of the company came from operating as a "multi-local"

business that for decades relied heavily on the insight of local bottling partners. That is

because its global strategy is to allow its businesses in more than 200 countries to act

according to local need, local laws, local cultures, and so on. Coca-Cola pursues an

assumed global strategy, allowing for differences in packaging, distribution, and media

that are important to a particular country or geographical area. Hence, the global strategy

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is localized through a specific geographic marketing plan. Instead of applying a global

strategy, it is likely to be a strategy of thinking globally, but acting locally.

This signifies that if their local colleagues develop an idea or a strategy that is the right

thing to do locally, and it fits within fundamental values, policies, and standards of

integrity and quality of the Coca-Cola Company, then they have the authority and

responsibility to do so. At the same time, they will be accountable for the outcomes of the

idea or strategy.

It is apparent that a company such as the Coca-Cola Company has realized the

weaknesses and the deficiencies of applying a genuine or true global strategy approach in

their worldwide business activities. To be in high favor of local ultimate consumer

adaptations is emphasized as crucial for their business activities to be prosperous.

Therefore, their multi-local strategy approach is still going strong and adequately for the

company's worldwide business activities.

Visual Communications of Coca Cola in India as a Site of Mediation Between

Global and Local Factors:

Diverse Indian context-

India’s diversity can be somewhat attributed to its lengthy history, extensive size,

extreme range of climatic and geographic conditions and the absorption of the prolonged

influence of traders, invaders, immigrants and colonizers. Although Hindi is the native

language of 30% of the population, there are 24 languages spoken by more than a million

people followed by numerous further languages and dialects. It is worth noting that India

possesses the world’s largest English speaking understanding population. Alongside the

diversity of language are the variety of religious beliefs (6 with over 1 million believers:

Hindu, Muslim, Sikh, Buddhist, Jain and Christian) and local customs which flourish in

its 29 states. Urban dwellers, including those of the six key areas (‘metros’) of Bombay,

Delhi, Calcutta, Bangalore, Chennai and Pune are countered by rural dwellers that

comprise more than two thirds of the population. Add to this issues of literacy (52%) and

24

extremities of class and caste and one sees that India presents a potent mix for

transnational marketers to contend with.

Coca Cola’s background in India-

In 1977 Coke was forced out from operations in India by a socialist government as part of

a drive for national self-sufficiency. After a 16-year absence, neo-liberation policies in

India allowed for its return in 1993 but to a very different cultural and economic

landscape. During their absence local company Parle Brothers had formulated an

alternative cola, Thums Up, alongside a number of other beverages like the lemon

flavored soda Limca and mango flavored Maaza. Coke bought the complete Parle

operations in 1993 and presumed that they could use their tried and tested method of

taking their biggest competitors out of action. But “a generation had grown up without

Coke and wasn't pining for its return.” It also seems that locals feel that unlike Coke,

Thums Up tastes fine even when not refrigerated which has obvious significance for less

affluent consumers.

Although Pepsi, with their 6-year head start had paved the way in renewing demand for

global cola, it was not so easy for the returning international soda-superstar. Pepsi

embraced youth in its campaigning whereas Coke mistakenly focused on the American

way of life. It has been argued that such errant focus by global companies had

undermined the popular conception of commercial imperialism. Such de-localization

resulted in a situation where “multinationals were being interpreted as a kind of

recapitulation of the colonial encounter, in which Indians were proving resistant to the

best laid plans that the finest marketing minds of the West had to offer.” Although their

intensive investment in the first five years back in India gave them the credit of being one

of India’s largest investors Coca Cola’s dismal sales results during this period begged

significant re-strategizing.

MEDIATION OF MARKET & MARKETING –

Competition-

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Hindustan Lever, global giant Unilever’s local arm, was among the first producers and

distributors of FMCGs to realize the potential of India's rural market by introducing small

size packets of washing powder that would last several washes. By reducing margins but

increasing turnover, profit-seeking in India by global players was unleashed. It was seen

that FMCGs in India require employment of the 3As of availability, affordability and

acceptability. Coca Cola acknowledging its lack of comprehension of local

particularities, launched upon extensive research in India. It realised that it was

competing with traditional refreshments such as narial-pani (coconut-water), nimbu-pani

(lemon-water), chai (tea), lassi (yoghurt drink) and fruit juices.

Pricing-

Competitive pricing in such a scenario was imperative. (Kaye, 2004) Additionally one

could note that affordability was a driver in the Indian context for desirability so Coke

launched a 200ml returnable glass bottle at lower prices of Rs. 5 with accompanying

advertising campaigns.

(a) (b)

(b) Sign-writer template advertising the 200ml Coke at Rs.5 in Gujarati

(c) Coke and food combo with Southern style meal

Positioning & Segmentation-

It was also noted that soft drink consumption was somewhat limited to special occasions

like outings, parties, festivals and weddings in contrast to more affluent countries where

26

daily consumption occurred. Within consumers Coke located two distinct target markets:

urban youth which they called India A and rural Indians which were called India B.

Worth noting is that India A only made up 4% of India’s total population although could

be seen as a lucrative market in terms of influence, income & consumption habits. In line

with decentralizing thrust of Coke internationally, local managers and advertising teams

were recruited and regional teams were established in a multi-local network system. Such

embracing of transnationality has been commended as encouraging local responsiveness.

Further investigation of regionally segmented audiences has resulted in advertisements

currently being in more than six languages reflecting India’s linguistic diversity.

Southern states often require markedly different strategies such as alternate celebrity

endorsements (Tamil vs. Bollywood stars) and promotion of Coke accompanying

regionally relevant food combos. People in south India have black complexion, as

compared to other north and western zones. That is why they consider that black colored

drinks will have further significant effect on their complexion. Sale shows that, other the

sale of black colored drink is less than all other drinks. Further to such localized efforts

were the national television commercial and print campaigns which took a turn from

earlier American style aspiration value to a much more vernacular style. Collectively

such cultural mediation of marketing, based on greater insights of local specificity,

contributed to the doubling of rural penetration from 2001 to 2003 and the pushing of

Coke ahead of former leaders Pepsi and Thums Up in rural markets.

Positioning through Advertisement & Print Media-

In order to illustrate the successful use of idiomatic advertising in television and print

media, let’s focus on the Thanda campaign created by Prasoon Joshi of the Mumbai

office of international advertising firm McCann Erickson which has included various

manifestations from 1998 onwards. Thanda Matlab Coca Cola (Thanda Means Coca-

Cola) played on the Northern Indian vernacular use of ‘thanda’ (cold) as a generic term

for a cold drink. Guests are commonly asked “garam? thanda?” on arrival, implying that

they state their preference for tea or cold drinks. In this manner one can see that the

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Thanda campaign attempts to embed Coca Cola in local tradition rather than inserting a

foreign one. Rather than highlighting aspirational distance it focuses on proximity to the

familiar with the intention of appealing to rural sensibilities. Emphasis on cold is also a

strategic position in the annual summer ‘cola wars’ which take place between Coke and

Pepsi to the backdrop of searing temperatures.

The Thanda print ads show a series of scenes in which Coca Cola is subsumed by

‘Indianess’. The ads are shot to look unconstructed in a way that embraces the local and

celebrates the common-man. Drinking Coca Cola is not emphasized but cooling

connotations are evident in the complete series. The concept of creolisation, which is

usually equated with errant decoding of brand value, is here harnessed by the advertisers.

Creolisation refers to the mixture of meanings and forms from ambivalent sources in

transcultural contexts. In this way it can be seen that “consumers often appropriate the

meanings of global brands to their own ends, creatively adding new cultural associations,

dropping incompatible ones, and transforming others to fit into local cultural and lifestyle

patterns.” Whereas examples of creolisation are usually frowned upon by brand

producers, Prasoon saw it as effective to produce virtue from such necessity that

commonly underpins the Indian rural sector.

In this way the specifically Indian concept of juggard is captured which entails localized

ingenious improvisation. Although the campaign was aimed at India B, the way that it

seems to intentionally undermine the conventional advertising project itself created an

additional appeal with India A. This operates in the same way that ironic campaign by

Benetton and Diesel capture more affluent international audiences that have become

jaded by incessant advertising .In fact the Shade of Crates ad attracted favourable

international attention in winning a Golden Lion at Cannes in 2003.

Glocalized advertising-

The local thrust of the press ads was companied by a complimentary yet markedly

different television commercial campaign. Bollywood actor Aamir Khan poses as a

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variety of regionally inspired characters in a highly idiomatic series of ads which

additionally largely parody the Bollywood film genre. Once again the campaign

represented an attempt to speak to the rural sector with the main screenings being on

local television channels but later gained surprising popularity with India A and began to

appear on cable and satellite channels as well.

To follow are samples of Thanda campaign television commercial synopsis:

MUMBAI GANGSTER –

Arrogant gangster enters bar and asks for a thanda. Barman gives him a soft drink. He

asks again, same problem. Explains that by thanda he means Coca Cola leading into song

and product focused shots.

Mumbai Gangster Thanda TVC

PUNJABI FARMER –

Three metro girls get stranded in country due to car breakdown. They venture into field

and ask farmer for a thanda. He proceeds with poetically, rural, flirtatious banter. He

draws up a bucket from the well which is full of Coke, leading into the tag-line and a

song which parodies a traditional Punjabi folksong. The common-man wows the elite

women.

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Punjabi Farmer and Hyderabadi Thanda TVCs

HYDERABADI SHOP-OWNER –

Khan act as if disappointment as beautiful customer calls him bhai(brother) which

quashes his hopes of romantic development. He goes on to explain that thanda means

Coke which leads into a song. The local and class-based characteristics of paan chewing

and tying of the lungi add a vernacular humor. The ad places Coke within reach of the

elite (woman) and the common-man (Khan).

NEPALI TOURIST GUIDE –

Nepali guide shows honeymoon tourists through the mountains. Husband asks for a

thanda and wife gives him Coke. Guide asks for thanda and they give him a boxed juice

of inferior quality. He is insulted and starts giving them an obviously misguided tour

which they find confusing. Khan then announces that this is all as real as the juice is

thanda to which they look embarrassed and hand over a Coke, leading into the tag-line

and a comic song. The common-man gets the better of the middle-class couple.

The comical characters do not patronize Indians as the ads employ the Bollywood genre

feature of selfeffacing male characters. All use regionally specific language though this is

able to be decoded by most Indians. All include a song which ties in the Thanda Matlab

Coca-Cola tag line- usually related in style, language or manner to the location. Most ads

show common-men in a favourable light than more elite characters. The exception being

the gangster, but he would also not be considered elite so in this case rebel wisdom is

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celebrated. Hybridization is further emphasized by mixture of Anglo and Indo scripts

which reflects everyday speaking in which local languages like Hindi are peppered with

English.

A sub-section of the Thanda campaign promoted the reduced size and corresponding

price education of Coca Cola bottles, using the tag-line Panch Rupiya Matlab Chota

Coca Cola (Five Rupees Means Small Coca Cola)

Nepali Tourist Guide Thanda TVC UP Bahiya in the Panch Rupiya TVC

UP BAHIYA –

Two girls buy Coke and the shop owner requests Rs. 6 (former price) The safari suitclad

bahiya saunters over and asks how many fingers he’s holding up to which the shop owner

answers “five” followed by the query of how many fingerprints it will make when it slaps

him? “Five”. How many rupees for a Coke? “Five” How many wives has he got? “Five”.

Everyone laughs and the women are impressed with their 1 rupee saviour.

Distribution & Visual Marketing-

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Adaptation to distribution in diverse conditions includes use of branded rickshaw vans,

tricycles and lahris (pushcarts) that can cope with congested Indian urban roads and an

extensive network and hub system has been devised for rural delivery. Additionally lahris

mobilize supply, as fixed shops are often not apparent in popular locations such as parks,

colleges and even slums. Such vehicles are commonly branded by local sign-writers who

also produce numerous wall advertisements – another way in which the Coca Cola visual

marketing has become localized. Sign-writing of Coke advertising in India tempers the

brand standardization and consistency evident in more affluent countries while firmly

anchoring it in a vernacular style of the Indian streetscape. Sign-writers tend to be

relatively self-taught or have learnt through apprenticeships, adding to such

inconsistency. The legacy of a prolonged and extensive trading culture since Vedic-

Aryan times has had a pervasive effect on the lure for buyers’ attention in the form of an

onslaught of signboards in India. Although modernization is evident, hand painted

typography is still commonly sighted in the array of competing signs and Coca Cola is

apparent in such displays.

Regional based advertising campaigns-

Coca Cola in Ahmadabad services the Gujarat region including rural locations. It uses a

local advertising company to devise locally relevant campaigns for the abundant number

of festivals in the state. Such ads are not as slick as campaigns for more affluent countries

but speak directly to their Gujarati audience and exemplify the multi-local approach of

Coca Cola in India. Examples of using Coke to celebrate the local are campaigns for

Navratri (Gujarati nine night festival of traditional dance) which look nothing like

campaigns one would encounter for Coca Cola elsewhere in the world. To appeal to the

mercantile sensibility of Gujaratis, tie-ups with alternate brands are apparent with Coke

being coupled with other items for value added purchase. Rather than aspirational value it

would seems that Indians respond more effectively to mediation of tradition by FMCGs.

This is seen in the success of the Coke Goes Better with Food strategy which is used

nationwide in the form of tie-ups with food outlets that get favourable deals for

exclusivity of Coca Cola products. In so doing Coke again partakes in existing traditions

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rather than forging new ones. In Ahmedabad, as in other locales, table-top advertising is

provided that highlights Coke and food combos those are region specific.

Glocalization forced to discuss the term visual branding as a site of negotiation between

the duality of foreign company and local consumers. Although it is commonly noted that

there is an international imbalance of power that favours more affluent countries, the case

of the turnaround of Coca Cola sales in India demonstrates that economic gain does not

necessarily comes from affluent consumers, but also from passive less affluent

consumers. Viewing globalisation as an essentially homogenizing force seems non-

representative. The central problem of today's global interactions is the tension between

cultural homogenization and cultural heterogenisation”. One could see the Thanda press

ads in India mediate such tension. Indian advertising can be seen as negotiation between

the past, present and future of Indian global modernity and local tradition which is

exemplified by Coca Cola’s campaigns. In this way we can see that advertising is a

process of transculturation (synthesis of hybrid cultural forms) and that as much as

cultures can be perceived as globalising, introduced products frequently themselves

become indigenised. The Coca Cola Thanda campaign can be seen to attempt resolve

Indian ambivalence of class, status and modernity.

Hybridizing of introduced products seems to come naturally to resilient Indian consumers

who have fared a lengthy legacy of foreign influences. In a country where tandoori-

chicken pizzas compete with McDonalds it is the ability to absorb and transform that

seems to constitute the contemporary Indian. The insertion of global products into local

cultures can paradoxically result in diversity as such products are reconfigured through

more localized meanings. Their visual brand strategies counter popular opinion about

their colonizing commercial manner.

Mc Donald’s Case

Inefficiency in understanding the culture and system-

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In May 2001, a class action lawsuit was filed against the world's largest fast-food chain

McDonald's, in Seattle, US, alleged that the company had, for over a decade, and duped

vegetarian customers into eating French fries that contained beef extracts.

This was followed by a spate of media reports detailing how the French fries served at

McDonald's were falsely promoted as being '100% vegetarian.' Although McDonald's

initially declined to comment on the issue, the company issued a 'conditional apology,'

admitting to using beef flavoring in the fries. The furore over the matter settled down,

when to McDonald's horror, some of its restaurants in India were vandalized. Activists of

Hindu fundamentalist groups - the Shiv Sena, the Vishwa Hindu Parishad (VHP) and the

Bajrang Dal, staged a demonstration in front of the McDonald's head office in Delhi

protesting the alleged use of beef flavouring. They submitted a memorandum to the

Prime Minister, demanding the closure of all McDonald's outlets in the country.

McDonald transformed them completely to adapt to Indian market. They continued this

growth in India, and all over the world. They hit the right points, from playing it safe;

investing their time doing marketing research, to find the best places to put a restaurant

and finding out what it is that people in India like to eat. This is what has separated

McDonald’s from the rest of the western restaurants which tried to take the easy

approach, just jump right into the country blind folded, and hope for the best.

Considering the fact that there are numerous different religions in India, McDonald’s had

to place an extreme focus on their food selection, to not upset or offend any religion in

particular. Instead of a Big Mac at any restaurant, they offer Mutton Burgers, which is

typically a substitute for beef in the culture of India. It may seem silly for McDonald’s to

be taking away the burger for which is became famous, but in such a multinational

company, they had to do what was best for business. Only 20% of the population is

completely vegetarian, so for them and for others who enjoy the taste, they offer veggie

burgers.

Understanding the importance of adaptation to local culture, tastes and preferences for

global food retailers is an important aspect. McDonald's has maintained uniform brand

identity across the globe while customizing its menu to suit local tastes.

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McDonald’s in India

In October 1996, McDonald’s opened its first Indian outlet in Vasant Vihar, an affluent

residential colony in India’s capital, New Delhi. As of November 2004, McDonald’s has

opened a total of 58 restaurants, mostly in the northern and western part of India in eight

years (by 2004). McDonald’s with carefully planned entry and expansion strategy, made

hamburgers so prominent in a cultural zone dominated by non-beef, non-pork, vegetarian,

and regional foods such as chola bhatura, kababs, bhaji, samosa, dosa, vada, sambar,

bhelpuri, and rice.

India’s Economic Liberalization

The effort of McDonald’s to enter India commenced in earnest in the early 1990s after it

successfully opened outlets in China. India’s wide range of economic reforms in the

1990s, coupled with a potentially large consumer market (with 300 million consumers,

almost as big as China), provided enough incentives for McDonald’s to enter into the

Indian market. Executives at McDonald’s were aware of India’s deep suspicion of

foreign companies after its independence in 1947. Political leaders propounded

vigorously the swadeshi mantra (preference for national products).

Accordingly, they pursued policies of economic nationalism in which heavy state

intervention in economic matters and preference for domestic companies continued until

the late 1980s. Such strategies produced a low economic growth rate. India began to

borrow heavily from both commercial sources and the World Bank and Asian

Development Bank to finance its growing budget deficits. By 1990, India’s economic

situation was in a critical stage. In June 1991, India faced a severe balance of payment

crisis as its foreign exchange reserve plummeted, barely sufficient to pay for two weeks

of vital imports.

In response to this severe macroeconomic crisis, India’s newly formed government,

under the leadership of Prime Minister Narasimha Rao of the Congress party, introduced

a series of economic reforms designed to decrease government control in the economy

and move toward an increasingly market-based economy.

35

McDonald’s did not enter the Indian market until 1996. Instead, it spent about six years

in planning, extensively researching Indian consumer tastes, product development, and

supply chain arrangement before opening its first outlet in 1996.

McDonald’s Road Map for India

Emphasis on Local Management-

McDonald’s has given the adage of “think global, act local” a concrete shape in India.

The company’s localization strategy is clearly manifest in the critical area of

management. McDonald’s decided to set up two joint ventures on 50:50 basis with two

local entrepreneurs in Mumbai and Delhi. In Mumbai, Amit Jatia’s company, Hardcastle

Restaurants Private Limited, was selected to own and manage McDonald’s restaurants in

the western region. In Delhi, Vikram Bakshi’s Connaught Plaza Restaurants Private

Limited was chosen to own and manage McDonald’s restaurants in the northern region. It

was their business plan emphasizing India-centric management strategies and their easy

access to bureaucracy so critical to effective government relations building.

“Politically Correct” Strategy-

In the beginning, McDonald’s was faced with two challenges of the Indian market:

(1) How to avoid hurting religious sensibilities of Indian consumers, and

(2) How to avoid political confrontation with Indian government and political activists.

McDonald’s took a series of politically correct strategies to deal with the initial

challenges of the Indian market. Since India’s majority Hindus (80% of India’s

population) reveres cows as sacred and 150 million of Indian Muslims do not eat pork,

beef and pork have been a “complete no-no” from the start. Instead, McDonald’s

introduced a mutton-based “Maharaja Mac” in India, as opposed to its flagship beef-

based Big Mac elsewhere. Other items—such as the tantalizing

McAloo Tikki Burger (breaded potato and pea pattie)—were added to the menu to lure

India’s middle class. Approximately 75% of the menu available in McDonald’s in India

is Indianized and specifically designed to woo Indian customers.

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Employment Opportunity-

India has come a long way from opposing the entry of MNCs to encouraging them to

expand their business operations in India. Today, every expansion move McDonald’s

makes is received well by government officials. An important reason for this shift in

attitude is the ability of the company to generate quality and long-term employment

opportunities for Indians. McDonald’s typically employs local people, and the average

McDonald’s restaurant in India employs more than 100 people in all kinds of positions—

cashiers, cooks managers, etc. Besides, every expansion also brings additional income

and employment opportunities to India’s agricultural work force, which is very pleasing

to government officials.

Green Sensitivity-

In India, there is a vocal group of environmental and animal activists who oppose the

entry of fast-food chains like KFC and McDonald’s. According to Maneka Gandhi,

former environment minister in the central government, and Dr. Vandana Shiva, director

of the Research Foundation for Science, Technology and Ecology, junk food chains like

McDonald’s and KFC destroy ecological balance and cause severe behavioral disorders

because of their fatty and unhealthy foods, which have excessive levels of monosodium

glutamate (MSG). To counter such negative campaigns, McDonald’s has instituted a

special fund to support green movements in Delhi. In Mumbai, in addition to financial

contributions, it sponsors various community- related activities—such as “keep your city

clean”—to promote environmental consciousness.

Corporate Citizenship: Giving Back Is Good Business-

The executives of McDonald’s understand it well that giving back to society is also a

critical element of a company’s brand and reputation. Giving back to the community

brings benefits that far exceed any costs—whether it’s in terms of strengthening the

brand name or generating positive political capital that translates into more official

support for company’s expansion strategy. Thus, as a part of its corporate citizenship

strategy, McDonald’s has been involved in many community-related projects in India.

Most of its projects are, however, directed toward children.

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One of its most popular community programs in Mumbai is called McDonald’s Spotlight,

which is an annual interschool performing arts competition. Since 2002, McDonald’s has

been participating in World Children’s Day on November 20 that coincides with United

Nations’ Universal Children’s Day, where restaurants all over the world come together to

raise funds for a charity of their choice. So instead of World Children’s Day, McDonald’s

celebrates World Children’s Week from November 14-20 in all its restaurants in India,

during which funds are raised to finance various educational programs for children.

One such popular initiative by McDonald’s in Mumbai was known as the Blue Dot

initiative that supports educational programs for the girl-child. In the Indian society,

where the girl-child is always less favored than a boy, such an initiative by McDonald’s

has generated a lot of goodwill among Mumbai’s politicians and community

organizations that are working toward improving the status of the girl-child.

Another successful program sponsored by McDonald’s is the Pulse Polio program that

aims to make India polio-free by the year 2005. Partnering with the Rotary Club and local

health organizations in Mumbai, McDonald’s had set up inoculation booths outside its

restaurants in Mumbai since 2001 to provide free polio vaccine to the children up to the

age of five years during the polio eradication drive week once a year. Needless to say,

such community- related programs have earned official support for McDonald’s and have

helped its brand and reputation.

Pricing-

Much of the McDonald’s growth in India can be attributed to its pricing strategy. Since,

on an average, each household spends about 50% of income on food and beverages in

India, food prices are always a sensitive issue. Even the Indian middle class, despite their

much improved income level, remains very price sensitive. Accordingly, McDonald’s has

pursued what Amit Jatia, the company’s managing director in the Western region, calls

“purchasing power pricing” or the customer’s ability to pay. The adoption of such a

pricing strategy in India offers a useful country-specific insight on possible price

differences of the company’s products on the basis of purchasing power parity (PPP)

calculations across countries as provided by the so-called Big Mac Index.

38

Worldwide, McDonald’s has achieved success by tapping middle-class households. But

in India, while McDonald’s has been able to get a larger share of rich and upper-

middleclass population, it has not been as successful at effectively tapping the middle-

class and lower middle-class segments. The company cut prices on its vegetable nuggets

from Rs 29 to Rs 19, and the soft service ice cream cone from Rs 15 to Rs 7 in 1997, In

September 2001, McDonald’s offered its enormously popular shudh shakahari (pure

vegetarian) Veg Surprise (a veggie burger) for Rs 17 to capture lower-middle class

segments. McDonald’s launched a Happy Price menu under which it sells four of its

burger products at Rs20 each. Clearly, the McDonald’s strategy has been to increase sales

volume of its products by making its products available at an affordable price.

McDonald’s has been offering value meals in a range of prices—Rs 29, Rs 39, Rs 49, Rs

59, Rs 79, and Rs 89. McDonald’s has employed this value-ladder strategy to ensure

affordability and thus attract the widest section of customers.

Another strategy that seems to have gone well with Indian customers is what the

company calls the 80-20 menu board—80% visual and 20% descriptive. The main

objective of the company is to make it easier for customers to understand what the 29, 39,

49, 59, 79, and 89 rupee options are. Coupled with the pricing range, McDonald’s quick

service, convenience, and no-tips environment have attracted many school- and college-

going customers, as well as young middle-class families.

The most important reason for McDonald’s pricing flexibility is its well-established

supply chain arrangement, which ensures efficiency and speed in distribution. Besides,

huge increases in volume sales and food processing technology have been helping the

company to offset its cost.

Supply Chain Management-

Another critical strategy was to set up a well-established supply chain in India in order to

achieve three objectives:

39

(1) to operationalize its globally practiced QSCV (quality, service, cleanliness, and value)

principle

(2) to enjoy flexibility in pricing, and

(3) to launch a new product when necessary.

To achieve these three objectives, McDonald’s often uses an outsourcing model in all its

markets. But given India’s relatively higher import duties and foreign exchange

fluctuations, McDonald’s decided early on to source its raw materials from the local

suppliers to the maximum extent possible.

Currently, McDonald’s only imports the process control equipment that allows it to dish

out burgers and other orders within its super-fast time frames. The company, however,

sources 95% of its raw materials from 38 local suppliers.19 Fresh lettuce, cheese, pickles,

sauce, chicken patties, vegetable patties, pies, and pizza puffs comes from local suppliers

based a Delhi, Maharashtra, Andhra Pradesh and many other cities from different states.

Setting up a well-coordinated supply chain was not easy, given India’s poor

transportation and storage infrastructure, as well as its lower-quality agricultural

products, so suppliers worked together with local Indian companies to develop products

that meet the rigorous quality standards McDonald’s demands. An underlying principle in

product development was to strictly adhere to the Indian government’s regulation on

food, health, and hygiene and to exceed the government’s standards. To do so,

McDonald’s transferred its state-of-the-art food processing technology to India, enabling

Indian businesses to grow by improving their ability to compete in today’s international

markets.

Because of the company’s installation of enterprise resource planning (ERP) software,

which provides data of what is selling where, McDonald’s, has earned an excellent

reputation in maintaining a tight “delivery-on-time” schedule. This way, the company is

able to anticipate demand in each retail outlet and place orders with producers

accordingly. They have also set up a trucking fleet to move supplies to restaurants at

short notice. Each of the company’s delivery trucks has three degrees of refrigeration—a

freezer section for meats, a cold refrigerator section for vegetables, and a non-refrigerated

section for paper cups, napkins, and plastic cutlery. This way, each truck delivers

40

multiple items at one go and save the company and restaurants a huge sum of

transportation cost.

The company maintains detailed data logs to track the movement of each batch of food

items. In case of a complaint about a food item at any McDonald’s restaurants, the data

logs help the company to identify the batch from which the particular food item came.

This ensures a high-quality standard of food items delivered to each McDonald’s outlet.

It has minimized costs, optimized quality control, and ensured higher customer

satisfaction, which is so very essential for the company’s growth. More critically, the

improved transportation and food processing technology seems to have served as an

important catalyst for increasing India’s agricultural productivity while raising farmers’

incomes. This has scored very well on the political front and won the government’s

goodwill.

Location

The initial openings of McDonald’s outlets in Delhi and Mumbai were driven by

affordability and brand recognition factors. Given the metropolitan culture and wide

Western exposure of these two large cities, where most of India’s rich and upper middle-

class population live and are aware of McDonald’s foods, it was logical for the company

to open its initial outlets in these two cities. Besides, the inhabitants of both Mumbai and

Delhi love to experiment with a wide variety of foods. This obviously suited McDonald’s

brand of foods. In addition, McDonald’s has two large distribution centers in these two

metros. Needless to say, opening up restaurants in these two cities would drive down the

opportunity and transaction costs.

Logistics play a critical role in McDonald’s location strategy. As a part of its Quick

Service Restaurant (QSR) business, McDonald’s has initially decided to open its outlets

only within a 500-km radius of its main distribution centers in Delhi and Mumbai.

Besides Delhi and Mumbai, other places where McDonald’s has opened up restaurants

are satellite cities located near Delhi (such as Noida, Gurgaon, and Faridabad), or

Mumbai (such as Pune); places with tourist appeal (such as Jaipur, Mathura, and Shimla);

and cities with an eating-out culture (such as Ahmedabad, Chandigarh, and Bangalore).

McDonald’s has partnered with the state-owned oil company, Bharat Petroleum

41

Corporation Ltd. (BPCL); to set up restaurants at the latter’s petrol stations in and around

Delhi to make it more convenient for automobile-driving consumers. BPCL is the leading

petroleum retailer in India and has the largest number of petroleum stations in and around

Delhi. It is important to note the shift in government attitude toward MNCs that led to a

successful partnership between McDonald’s and the largest state-owned company.

Keeping an eye on the huge potential for eating out venues for lower middle-class

Indians, McDonald’s has partnered with a railway station and bus station in Delhi to open

its outlets: Delhi Metro Rail Corporation, and the overcrowded Delhi’s Inter-State Bus

Terminus, where thousands of people pass through daily on their way to different

destinations.

In order to tap into the business of shopping mall and film-going customers, McDonald’s

has set up outlets at shopping malls and new multiplexes in metros like Delhi and

Mumbai.

Cultural Sensitivity-

Since the mid-1980s, Indian society has undergone a dramatic shift in social values. The

traditional caste-defined view of Indian life, which undervalues social and economic

mobility, and the dominance of the Brahmanical culture’s disdain toward commerce have

been challenged by the middle class in contemporary Indian society. In metropolitan

cities, extensive foreign media exposure and the Internet revolution have contributed to

the emergence of a new social attitude which accepts Western values and culture. The

contemporary Indian society can be understood on the basis of a 70/30 dynamic. While

70% of Indians are still traditional, poor, and live in rural areas, 30% of Indians (more

than 300 million people) have emerged as rich, modern, Western-exposed, English-

speaking, urban dwellers. In India’s metropolitan cities, the young and rich have

embraced the spirit of American culture. The image of McDonald’s as a premier

American fast food chain fits well with this changing Indian socio-cultural landscape.

For its part, McDonald’s has also introduced several new products specifically for Indian

consumers in order to get accepted and successfully blend into local Indian culture. Of

course, introducing local products for the local palate is not a new concept at

McDonald’s. The Teriyaki Burger in Japan, Croque McDo in France, the Maharani

42

Burger in Malaysia, a green pepper burger in Singapore, a Thai burger with a Thai curry

paste, spaghetti in the Philippines, spicy chicken with rice in Indonesia, and spicy

seafood noodle in China are some of the examples of its localization strategy. But what is

unique in the context of India is the company’s willingness to replace its core product,

beef-based Big Mac.

Given the fact that an overwhelming majority of Indians (about 83%) do not eat beef or

pork, the introduction of the Maharaja Mac (a mutton-based burger) by McDonald’s

seems to be an appropriate cultural fit. Contrary to popular belief, however, India is not a

predominantly vegetarian country. About 20% of India’s population is completely

vegetarian. A closer look at state-level food habits in India reveals that food preferences

vary widely among the country’s 30 states and six union territories.

While part of this vegetarianism is economic, a more compelling force is ethical and even

religious. Jains avoid meat totally, while many Buddhists in India are vegetarian.

Brahmins, Saivite non-Brahmins of South India and several Vaishnavite sects across the

country avoid meat. Interestingly, though, Brahmins

of East India, Kashmir, and the Saraswats of the southwest eat fish and mutton. But even

among meat-eaters, beef is taboo. For vegetarian consumers, McDonald’s offers veggie

burgers, which are very popular among the vegetarians in India. Like the Maharaja Mac,

the veggie burger has gone through a rigorous testing procedure and detailed planning.

Further, McDonald’s has sought to enforce strict standards in product development and

cooking so as not to ruffle cultural sensitivities of the vegetarian consumers of the Indian

society. All foods are strictly segregated into vegetarian and non vegetarian lines and

separate utensils are used for cooking vegetarian and non vegetarian foods. French fries

in India are not flavored with beef tallow, as is the case in the United States and

elsewhere. Even the mayonnaise and ice cream contain no eggs.

Indians typically spend more money on eating out and purchasing new products during

festival seasons. To capitalize on the spending habits of Indian consumers, McDonald’s

has often sought to launch new products, the so-called “fourth flavor,” during India’s

festival season, which falls between September and November. Some of the major and

popular religious festivals in India during September and November are Navratras,

Dussehra, and Diwali, when even non vegetarian Hindus turn vegetarian. Given this

43

dynamic, McDonald’s decided to launch a new product called Veg Surprise, a vegetable

burger laced with Indian spices, in September 2001, achieving an impressive sales figure

40% higher than what the company expected. Likewise, Paneer Salsa, a vegetarian wrap,

was introduced in 2003.

Given its growing popularity, this product is likely to be adopted by McDonald’s in

global markets soon.

Family-Centric and Child-Centric Strategy- (Exhibit 1)

In India, McDonald’s has positioned itself as a family restaurant. Family has become the

cornerstone of its strategy. Its outlets are called “McDonald’s Family Restaurants,” as

opposed to simply McDonald’s as in other parts of the world. McDonald’s restaurants

provide a clean, comfortable, and stress-free environment especially suited for working

families. With India’s changing family system in metropolitan cities, where the extended

family is no longer the preferred way of living, McDonald’s has become an attractive

place for working and busy young parents on weekdays. On weekends, residents of Delhi

and Mumbai bring their children to McDonald’s so that they can relax, while their

children play in McDonald’s hugely popular play places. Like its other worldwide

locations, McDonald’s targets children as their main clientele in India. Children in India

may not have the purchasing power comparable to their Western counterparts, but they

not only influence markets in terms of the parental decision-making to buy certain kinds

of products, they are also future consumers. Thus, McDonald’s has done everything

possible to attract children. When one of its outlets was opened in South Mumbai, a

children’s parade was organized all along the popular Marine Drive, led by McDonald’s

mascot, Ronald, who was accompanied by a 40-feet long float depicting the various

tourist destinations in Mumbai. It’s “Happy Meals” and the accompanying Lego toys are

a great attraction for children. McDonald’s play places—appropriately called Fun Zones

—appeal to children and their parents, because they are considered safe, reliable,

hygienic, and kid-friendly. McDonald’s also promotes birthday parties complete with

cake, candles, and toys in television advertising aimed directly at kids. In some Indian

cities like Mumbai, Delhi, and Bangalore, birthday parties are all the rage for upwardly

mobile youngsters. Given that most young people in these cities live in small,

44

overcrowded flats, McDonald’s has become a convenient and welcoming place for

birthday celebrations. McDonald’s has become a popular place for many jean-clad

teenagers, who use the outlet as a venue to meet their boyfriends/girlfriends, still a tricky

issue among Indian middle-class families. McDonald’s appeals to India’s new

Westernized elites because its food is clean, safe, and reliable. India’s upwardly mobile

middle-class families show considerable interest in enjoying what is often described as

McDonald’s terminology for products that are temporarily added to the menu.

McDonald’s offers attractive new promotions from time to time to attract more young

adults to its outlets. One such promotion—“Music Meal,” launched in April 2005 in

association with Coca- Cola India and Universal Music India—became extremely

popular with young men and women. By engaging young customers with fun and new

promotions that are in tune with their changing desires, McDonald’s has been able to

increase its business volume considerably over the past years.

McDonald’s had introduced other innovations that appeal to customers of all ages in

India. In some of its newly opened restaurants, McDonald’s has provided lounges for

senior citizens to relax and taste its food. For people used to a traditional restaurant

environment, in which waiters lead patrons to sitting places. Most Indians love to have

sweet desserts after a meal. Keeping this in mind, McDonald’s has opened several very

popular Cold Kiosks in Mumbai and Delhi. These Cold Kiosks, which are located either

inside the main outlet or adjacent to the McDonald’s outlet, offer customers an innovative

range of cold desserts such as ice creams with unusual flavors like bubble gum, green

apple, and peach.

For people who still want to eat at home or are unable to visit restaurants because of lack

of transportation, traffic jams, and overcrowded eating places, McDonald’s has

introduced its popular home-delivery (Mc Delivery) services. For another section of rich

middle-class families in Delhi and Mumbai who prefer to enjoy watching movies, cricket

matches at home, or just for plain relaxation away from cooking, McDonald’s home-

delivery services (where food is delivered usually hot) have become popular and

convenient. McDonald’s has achieved about a 15% increase in sales as a result of starting

home deliveries from some of its stores.

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Challenges Ahead

In India, McDonald’s did not create a market where none existed. It merely responded to

an opportunity presented by the changing Indian socio-cultural values and sustained

economic liberalization. McDonald’s strategy of positioning itself as a family restaurant

with an emphasis on local menus and local values seems to be working well in India. But

to what extent McDonald’s can continue its growth in India remains uncertain.

McDonald’s is more than just another American fast food chain. It carries a symbolic

load of Americanness—American variant of capitalism and its overwhelming domination

over the global economy. It is also a symbol of American cultural imperialism. For this

reason, McDonald’s operations in India, like other parts of the world, will continue to

face opposition from religious fundamentalists, environmentalists, protectionists, animal

rights activists, and anti globalization protestors.

Survey Analysis-

The main objective of the survey is to know the Brand awareness among the consumers.

To be on familiar terms with the kind of perspective the consumers have towards the

Glocalised Company and also towards Indian brands, who have

Many International MNC’s come into host countries to do business and adapt themselves

so well that consumers tend think and feel it as their own and Indian brand. Many aspects

has to be consider, and it’s not an easy task to make the consumer feel and think that the

brand belongs to them

One of the finest examples is the Brand Bata which has succeeded in all form to make

their presence in the market. People in India consider Bata as their own Indian Brand.

46

Among the general public, the survey shows that the no body consider Bata as

international brand

There are many Indian brands which try to position itself as a global brand. We have seen

a considerable amount of impact the Indians have because of the western culture. The

youth in urban India tend to buy the product which appeal to them and which has an

international and modern look to it.

Café Coffee Day is an Indian brand having headquarters in Bangalore, which people are

not aware of. Most of the respondents think that CCD is an international brand, rather

than Indian. It is because of the positioning and the value added in the outlets, which

force the general public to think that it’s an Indian brand.

Archies is another brand which is Indian. Most of the respondents said that Archies is an

international brand. But, others are not completely unaware that Archies is an Indian

brand, based in Delhi.

When we talk about the Telecom industry, Vodafone,

Glocalization in ad campaigns-

Top 5 Glocal advertisement-

1. Coca-Cola-

“Think global, act local” is the new slogan of global companies. A recent Coca-cola

advertisement was made with Bollywood star Hrithik Roshan on the theme ‘Jashn

Mana Le’ or ‘just have fun’. The advertisement shows the groups of young guys are

going out in the late night to have some food and fun, but find the food joints are

closed. On the way they meet Hrithik Roshan and go for a midnight fun with him and

Coca-Cola. The advertisement tries to connect with India’s college campus mood and

young IT-BPO professionals ready with hoards of money to have some extra fun and

fizz in their lives in globalized environment.

Another campaign for Coca-Cola featuring Bollywood star Amir Khan with the

caption “Thanda Matlab Coca-Cola” is an excellent example of ‘glocalization’

47

strategy by global brand. The detailed analysis has been done above in the Coke’s

case study.

2. Mc Donald-

Global brands entering India often look to Indian partners of their global advertising

agencies for working out their advertising strategies for Indian market. Designing an

advertisement for global brand to look local is quite challenging. When we see a

funny advertisement for McDonald’s with the look-alikes of dev Anand, Dilip Kumar

and Dharmendra, we laugh at it, but it connects with us so well that we even forget

that McDonald’s is a global brand.

The glocalization of advertisements and promotions is becoming well-entrenched

with numerous global brands entering Tier-II cities and semi-urban areas across India.

Glocalization has actually taken off over the last 10 years. Most global brands now

operate across the globe, because, the needs and wants of people are more or less

similar. If local idioms or words for a global brand are used, it makes a favorable

impact on the local customers. This phenomenon leads to narrowing the distinctions

between the national, local and international advertising agencies as a new challenge

are emerging in the international markets, especially in emerging markets.

The film opens on a Sunny Deol’s double at McDonald’s demanding a Mc aalu tikki.

The manager tells him that it’s for twenty rupees. Hearing the price as low as that...

..makes his father come out of him – Dharmendra’s double – and say, “Maa kasam,

yeh toh... ...hamare zamane ke daam hain.” As he starts dancing in joy, the VO plays,

“Aapke zamaane... .mein baap ke zamaane ke daam. McDonald’s ka Happy Price

Menu. Rs 20 only.” The ad ends as both of them declare, “I am loving it.”

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From the silver screen Salim enters McDonald's and asks an attendant.

"Arre bhai suno, vo Anarkali ne bataya is jagah men bauth hi zykedar cheez... ...milti

hai, vo bhi haamare zamaane

ke damon mein. Kya yeh baath sach

hai?" MVO: "McDonald's ka happy price menu, ab sirf bees rupey mein. Paisa

vasool." Relishing his burger, he says, "Jake kehdo zile-illahi se, I'm loving it."

Jingle: "Para pup pup pa." Super: 'i'm lovin' it.

HSBC-

For example, HSBC Bank positions its brand combining the global and local features

in its brochures, advertisements and websites. Visual and linguistic issues are

considered to project the brand. The bank’s strategy for branding is based on simple

local factor that emphasizes on ‘human-touch’ and creates a brand preference with

globalized customers. The Bank mixes two factors of global and local issues to help

customers to perceive and indentify on a global footing. In the banking industry,

understanding and giving importance to micro-cultural local issues while delivering

global services are equally important. HSBC had launched an India-specific

campaign with the tagline ‘We understand your point of view’ covering the burning

socio-cultural and environmental issues of the country. It also followed up with

49

another campaign, “HSBC provides your solution”. Considering the fact that HSBC

is a global bank, understanding India and positioning itself as an empathetic brand

must be a challenge for the bank. It requires building cross-cultural bridges between

brand and local needs.

Ripping peas a woman gets scared to find a green worm inside one. As she... ...shakes

it off her hand, her son comes and places the worm on his hand. He settles it on a

green plant and covers it with a jar after naming it as ‘Pintoo’. VO: “Different..

...people, different views. It’s this understanding that helps us serve you better.

HSBC. The world’s local bank.”

3. Pepsi

In the Glocalized era, the recipe for the brand survival is how many touch-points a

new customer has in the market place. The Pepsi My can Web Video is an

appropriate example of how customer touch-points are used in engaging the audience

in a meaningful dialogue. A perfect ‘jugalbandi’ between advertising media and the

content determine the success or failure of brand communication.

Therefore, the issue of how brands and advertising messages realize several potential

meanings has significant implications for advertising theory and practice.

Standardization Vs Adaptation-

The standardization versus adaptation debate in advertising theory, which has important

practical implications, is an ideal brand morphing research context. Standardization is a

risky communication strategy because of the deeply entrenched cultural meanings in

foreign markets. To create relevance for consumers and break through emotionally, ad

50

practitioners often customize campaigns to local markets to varying degrees. In some

cases, language and executional elements are changed, but the campaign remains

consistent with the overall desired brand image or positioning. In other cases, sponsors

must develop separate positioning strategies and very different campaigns for local

markets.

The standardization versus adaptation literature yields two pertinent insights. First,

marketers are important agents who participate in meaning creation, dissemination, and

reinforcement. Second, this practical issue provides a research context in which the

features and cultural practices of brand morphing may be productively discovered and

unpacked.

In the international arena, cultural differences bestow a changing character on brands as

commercial messages and products travel across different countries or social spaces in

society. Brand morphing implies several meanings as interpreted over different local

markets, depending on both the cultural meanings and practices that characterize that

community of consumers and the ways that ad practitioners negotiate meanings in their

development of marketing communications. The emergent interpretations embedded in

these social conditions enable consumers, to some extent, to co create the brand with

marketers’ involvement. Sponsors' professional practices target different international

markets and often attempt to adapt brand positioning to local conditions, and perhaps

modestly create meanings as well . Thus, brand morphing is facilitated at the agency level

when advertisers tailor ad campaigns to create relevance for consumers.

The following passage illustrates the ways local particularities can shape how an ad is

tailored for a local market:

We do advertising for global as well as local brands. There are some global brands that

follow global strategies, global positioning and global advertising with localized

elements. For example- Dove and Axe. It's a global brand. In all countries, it's basically

positioned similarly as an indulgent spread. The advertising idea is the same everywhere.

It's "Heaven" and the place of heaven is used as a metaphor for the product, sort of light,

fluffy, creamy cheese spread. The angel who's in heaven is meant to represent the local

51

consumer. So the talent is localized in each market. Essentially the idea is the same but

they localize certain elements such as the usage carrier.

Following are the examples of Standardization and Adaptation-

Maggi- 2minute main tayaar

Vodafone has adapted their ad campaigns including local element with zoo-zoo showing

the Indian scenario in the ads, which can easily relate to the Indian public.

Samsung recently came with the ad, with emotional appeal to it. TVCs- it starts with

daughter buying Samsung Ac for her mother, as she feel obliged to

All the luxury products and high-technology products have standardized advertisements,

(mostly Print advertising) due to low demand in the developing country like ours, where

the market share is very less, being rural population the highest than the Urban

population. For example, we have seen luxury brands like Tag Heur which rope up a

number of celebrity to endorsed the brand like Shahruk khan, recently we have seen Neil

Nitin Mukesh endorsing the brand in print medium.

The common view of positioning is that a constant, simple, and clear message must be

communicated to targeted consumers. Even more updated conceptualizations of

positioning that take into account global diversity still describe ads as falling into three

mutually exclusive categories: foreign, local, and global consumer culture positioning.

These categories preclude the possibility of multiple brand meanings among diverse

audiences.

Implications for Brand Positioning

Implications for Cultivating Brand Rejuvenation

Brands are many companies' most valuable assets, in which they invest huge amounts of

time, money, and effort. Large investments in a brand's positioning, though it may be

52

successful for a time, may inhibit it from staking out future relevant cultural meanings.

Therefore, a tired, unappealing, boring brand may eventuate over time.

Conclusion-

The issues of globalization of business activities and global strategies emerged in the

1980s and have been a popular topic since then. They have been used and applied among

executives in international and multinational corporations, as well as among scholars in

the field of international business. There is a continuum from the local adaptations of

worldwide strategies on one side, and the universal or global strategies without

adaptations on the other side. In an empirical context, the global strategy approach is

more like a managerial utopia, though any kind of genuine or true global strategy will not

be successfully implemented on a worldwide basis. A worldwide strategy has at least to

be adapted to local conditions, characteristics, and circumstances to a certain extent.

Nevertheless, it is a matter of thinking globally, but acting locally, i.e. acting and thinking

"glocally". Apparently, in most areas it is not suitable to apply a genuine or true global

strategy, since local adaptations of the business activities usually have to be taken into

consideration in the marketplace.

“Globalisation” does not merely homogenize. It differentiates and homogenizes

simultaneously. It does not destroy difference but manipulates it. The interplay between

the global and the local can be played out in differing ways in different contexts”. The

product itself is standardized, but the branding, positioning, and promotion may have to

be modified to reflect local conditions.

Glocalisation, at least in a business sense, is an abbreviation of the phrase think global,

act local. Scholars outside the business realm, however, clarify that local action is

embedded in local values, opinions, and attitudes rather than just a venue for simple

adaptations of products and corporate messages. This clarification should push

multinationals beyond the marketing message and adaptation realm into actual

relationship programmes with individuals and groups around the world who can be both

affected by the organisation and affect the organisation through activist pressure if they

feel the multinational “outsider” is not behaving appropriately in their host countries.

53

Bibliography

Reference

http://en.wikipedia.org/wiki/Glocalization

www.icmrimdia.org

ICFAI- Marketing Mastermind Journal

Annexure

Exhibit 1

54

McDonald’s Menu in India (May 2001)

MEAL

COMBOS

(with medium

fries and

medium

drink)

VALUE

MEALS (with

wedges and

regular drink)

DESSERTS

HAPPY

MEALS (with

regular drink

and toy)

Strawberry

A LA CARTE

FRIES

BEVERAGES

McVeggie

Apple Pies

McAloo Tikki

SOFT SERVE

McBurger

Vanilla

Maharaja Mac

Regular

McBurger with

Cheese Regular

Coke

McVeggie with

Cheese

Chicken

McGrill Vanilla

Pizza Puff

Mineral Water

500ml

McChicken

Burger

Medium

McVeggie

Burger Medium

Coke

Maharaja Mac Salad Sandwich

Pineapple

Salad

Sandwich

Coffee

McChicken

Burger with

Cheese Large

McVeggie

Burger with

Cheese Large

Coke

McChicken Pizza Puff Hot

Fudge

McAloo Tikki

Tea

Filet-o-Fish

Wedges

McAloo Tikki

Burger Regular

Fanta

McChicken

with Cheese

Chicken

McGrill Toned

Milk

McBurger McAloo Tikki

Burger with

Cheese Medium

Fanta

Filet-o-Fish Salad Sandwich

Large Fanta

Soft Serve

Cone

Pizza McPuff

Regular Sprite

55

Exhibit 2

Brand survey for Consumer awareness

BRAND NAME INDIAN INTERNATIONAL NOT AWARE

Bata

Hero Honda

Bajaj

McDonald

CCD

Maruti Suzuki

Asian paints

Airtel

Coke

Pepsi

Vodafone

Aircel

Barista

HDFC

Videocon

Lakme

Raymond

Cadbury

Apollo hospital

HDFC

Loop/Bpl

Britannia

Johnson & Johnson

Archies

56

Ashok Leyland

HSBC

Dominoes pizza

Maggi

Gillete

Sony

PVR

Blue Dart

Moser Baer

Lifebuoy

Titan

Anchor

Heinz ketchup

NAME-

AGE-

OCCUPATION-

Contact Number

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