Exercise 1: Multidomestic vs Global Debriefing J.-C. Usunier – International Marketing – October 2009

General Outcomes (total ratings) INDUSTRY Tobacco Portable computers Micro chips Ski lifts Writing instruments Airlines Toothpaste Pharm. (non prescription) Cosmetics Pharmaceuticals (prescription) Beer Mail services Sheets and pillows Washing machines Higher education services Automotive (cars) Meat-based food Total Tobacco has the highest overall grade for globalness (28) According to aggregated ratings, all industries seem to be rather global “Automotive” and “Meat-based food” industries apparently tend to be seen as slightly more multidomestic

You find it global because you make it overly simple Looking at different product types, sizes, tastes, usages, etc. is needed Looking at consumer motivation Looking at how people consume in local contexts (e.g. share food or not) Looking at words in the local language and what they express about local ways of consumption This has true and significant consequences for International Marketing

Global consumer? Toothpaste: “We assume that everybody has teeth and will use toothpaste the same way” Writing instruments: “Everybody has the same use of the product (write and draw) ” Pharmaceuticals (prescription drugs): “Everybody cannot have medicines (poor countries) / Some people prefer alternative methods (homeopathy,…)” Beer: “Consumption habits differ (In Germany, people drink beer anywhere at any time, in Norway it is just for special occasions (closed spaces))” Meat-based food: “Preferences and consumption habits are strongly related to culture and religion” Industry Rating Tobacco 10 Toothpaste 10 Airlines 9 Ski lifts 9 Writing instruments 9 Micro chips 9 Mail services 8 Sheets and pillows 8 Portable computers 8 Beer 7 Washing machines 7 Pharmaceuticals (non prescription) 6 Cosmetics 6 Higher education services 5 Pharmaceuticals (prescription) 4 Automotive (cars) 4 Meat-based food 2 There again, most industries are rated above the average which shows that students in this class tend to consider consumers as being very similar all around the world.

Global product/service? Product classification Airlines 9 Tobacco 9 Ski lifts 9 Portable computers 9 Writing instruments 9 Micro chips 9 Beer 8 Pharmaceuticals (prescription) 8 Pharmaceuticals (non prescription) 8 Toothpaste 8 Mail services 8 Higher education services 7.5 Sheets and pillows 7 Cosmetics 7 Automotive (cars) 6 Meat-based food 5 Washing machines 4 Once more, the industries are seen as very global in terms of the product/service they offer world-wide. Pharmaceuticals (non prescription drugs): “There are product differences at the international level: names, retailers, dosage, form, conditioning,…” Sheets and pillows: “Local differences such as size, mechanisms of the closure (zips/buttons)” Automotive: “For instance, necessary product adaptation in the UK (wheel on the right)” Pharmaceuticals (prescription drugs): “Some drugs cannot be sold in some countries because of regulations” Example: Tobacco industry: several types of product (cigarettes, cigars, chewing tobacco, snuff,…)

Global industry? Industry Rating Portable computers 10 Pharmaceuticals (prescription) 9 Tobacco 9 Micro chips 9 Washing machines 9 Cosmetics 9 Pharmaceuticals (non prescription) 8 Ski lifts 8 Writing instruments 7 Airlines 6 Meat-based food 6 Toothpaste 6 Beer 5 Sheets and pillows 5 Higher education services 5 Mail services 4 Automotive (cars) 4 Industries and their competitive scenes themselves are also considered as quite global as a whole. Cosmetics: “Global players try to create a leading Western image of beauty to reach standardized consumers’ needs” Ski lifts: “There are two main global players (Leitner (Italy) and Doppelmayr-Garaventa (Austria))” Tobacco: “Global players all have global and local brands (BAT owns Lucky Strike and Parisienne)” Pharmaceuticals (non prescription drugs): “The industry is global with large global players because it is very expensive, people want to buy drugs from major Pharma producers and there are a lot of entry barriers”