INTERNATIONAL MARKETING MANAGEMENT SESSION 14: DEVELOPING GLOBAL MARKETING STRATEGY: BROAD-BASED AND FOCUSED STRATEGIES 1

ACHIEVING GLOBAL SYNERGIES LEVERAGING ASSETS AND POSITION n Scale Efficiencies n Coordination and Integration n Transfer of Ideas, Experience and Know-how Global Strategy STRATEGIC FLEXIBILITY n Production Shifting n Multiple Sourcing n Transfer Pricing n Managing Cash Flow 2

COMPETITIVE STRATEGIES IN A GLOBAL INDUSTRY Locally Responsive Country Region Broad- Based Focused MARKET SCOPE Globally Integrated Global Segment National Niche HYBRID Degree of Integration 3

FOCUSED SEGMENT STRATEGIES Global Segment e.g. Rolex, Benetton e.g. LeMonde 4 Multiple Global Segments National Niche Strategies e.g. L’Oreal

BROAD-BASED STRATEGIES Hybrid Strategies e.g. Unilever, Sarah Lee e.g. Akzo-Nobel 5 Globally Coordinated Strategies Locally Responsive Strategies e.g. P&G Henkel Nestlé

GLOBAL INTEGRATION ADVANTAGES Global Coverage Uniform Identity and Strategy Fit with Global Customers Cost Economies CHALLENGES Design and Development of Global Products Building Management Capabilities Achieving Integration Loss of Local Adaptability 6

ASSESSING GEOGRAPHIC COVERAGE Emperors Kings Knights Crusaders Geographic Coverage Nb. of Countries Hi Lo Hi Lo Market Position Nb and Strength of Brands 7

IMPLICATIONS n Need to determine market scope and degree of strategy integration n Global focused strategies provide clear direction but pose growth issues n Broad-based strategies typically more complex and pose integration challenges 8