INTERNATIONAL MARKETING MANAGEMENT SESSION 15: DEVELOPING GLOBAL MARKETING STRATEGIES: BROAD-BASED STRATEGIES 1

BROAD-BASED STRATEGIES Hybrid Strategies e.g. Unilever, Sarah Lee e.g. Akzo-Nobel 2 Globally Coordinated Strategies Locally Responsive Strategies e.g. P&G Henkel Nestlé

MULTI-DOMESTIC BROAD-BASED STRATEGIES ADVANTAGES Broad Market Position Market Responsiveness Localized Market Power CHALLENGES Inconsistent National Brand Identities How to Leverage Position Across Markets 3

GLOBALLY INTEGRATED STRATEGIES 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 4

BUILDING GEOGRAPHIC POSITION VIA STRATEGIC ALLIANCES 5 Advantages/Objectives Acquire missing resources (or reduce costs) Broaden geographic scope Build competitive advantage Limitations Difficult to manage Partial control

ASSESSING GEOGRAPHIC COVERAGE Emperors Kings Knights Crusaders Geographic Coverage Nb. of Countries Market Position Nb and Strength of Brands Hi Lo Hi Lo 6

7 DIFFERENT TYPES OF ALLIANCES Country 3 Firm C Country 2 Firm B Manufacturing R & D Marketing & Sales Manufacturing R & D Marketing & Sales Manufacturing R & D Marketing & Sales R&D-BASED ALLIANCES Country 1 Firm A

DIFFERENT TYPES OF ALLIANCES PRODUCTION-BASED ALLIANCES Country 2 Firm B Manufacturing R & D Marketing & Sales Manufacturing R & D Marketing & Sales Country 1 Firm A 8

9 DIFFERENT TYPES OF ALLIANCES MARKETING-BASED ALLIANCES Country 2 Firm B Manufacturing R & D Marketing & Sales Manufacturing R & D Marketing & Sales Country 1 Firm A