1. Nestles Multidomestic Strategy Switz. Germany France U.S.

2. Nestle 1983 Structure

3. Marketing Activities F Strategy: Multidomestic vs. Global –How standardized or localized should the marketing program be? F HQ Influence –What is appropriate level of HQ intervention in decision making – degree of “centralization”??

4. Centralization and Standardization Strategy StandardizedLocalized HQ Influence Centralized Decentralized The extent to which activities are the same across national units. Forces? The extent to which activities are differentiated across national units. Forces?

5. Product Names F Coca-Cola in Chinese: “Bite the wax tadpole” F Castlemain XXXX lager in US: “Fourex (condoms)” F Olympia ROTO copiers in Chile: “broken” or “low-class”

6. Marketing F In India it’s the Taj Mahal (a mausoleum); in New York it’s the Helmsley Palace F United Airlines ad in Australia: Crocodile Dundee camps it up (…means Dundee flaunts his homosexuality) F Guinness is good for you...attracts pregnant women as key customers

7. Centralization and Standardization Strategy StandardizedLocalized HQ Influence Centralized Decentralized The degree to which HQ has decision-making authority. Forces for centralization?? The degree to which each country has decision-making authority. Forces for de-centralization??

8. Levels of HQ Influence Ignoring Informing Persuading Coordinating Approving Directing

9. Nestles Marketing Integration Strategy StandardizedLocalized HQ Influence Centralized Decentralized Packaging Product Promo. Price Advert. ? Branding

10. Managerial Roles F Product Manager –Strategist, architect, coordinator F Country Manager –Sensor, builder, contributor F Functional Manager –Specialist, cross-pollinator

11. Nestles’ New Marketing Structure