How to develop a Global Marketing Strategy

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How to develop a Global Marketing Strategy (’Glocalisation’)

SDU, Alsion 25. February, 2017 Svend Hollensen ([email protected])

Svend Hollensen, Global Marketing, 7e © Pearson Education Limited 2016

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Agenda: 1. The five stages in Global Marketing 2. Glocalization (Global + Local) - Persil: Persil Abaya & Persil Black

Svend Hollensen, Global Marketing, 7e © Pearson Education Limited 2016

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Svend Hollensen [email protected] is an Associate Professor of International Marketing at University of Southern Denmark (Sønderborg) Furthermore Svend is an External Professor at EURO FH in Hamburg, where he is also a member of the Senate. Through his company, Hollensen ApS (CVR 25548299), Svend has also worked as a business consultant for several multinational companies, as well as global organizations like World Bank. Svend Hollensen, Global Marketing, 7e © Pearson Education Limited 2016

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3rd ed. published in 2015

Svend Hollensen, Global Marketing, 7e © Pearson Education Limited 2016

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7th ed. published in July 2016

Svend Hollensen, Global Marketing, 7e © Pearson Education Limited 2016

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1.The five stages in Global Marketing

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Agenda:

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The five-stage decision model in global marketing Svend Hollensen, Global Marketing, 7e © Pearson Education Limited 2016

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2. Glocalization (Global

+ Local) - Persil: Persil Abaya & Persil Black

Svend Hollensen, Global Marketing, 7e © Pearson Education Limited 2016

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International strategy: Globalization, Localization or both at the same time =

Glocalization Svend Hollensen, Global Marketing, 7e © Pearson Education Limited 2016

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Figure 1.7

The glocalization framework Svend Hollensen, Global Marketing, 7e © Pearson Education Limited 2016

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Ford Focus global marketing plan

Source: Imagine China/Corbis. Svend Hollensen, Global Marketing, 7e © Pearson Education Limited 2016

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Svend Hollensen, Global Marketing, 7e © Pearson Education Limited 2016

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Pond’s Cream – different variants for South America, Asia and UK – which one is for the different geographic locations?

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https://www.youtube.com/watch?v=VwVKCH6ocvU

Svend Hollensen, Global Marketing, 7e © Pearson Education Limited 2016

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Illustration of the same product in the IKEA Catalogue in Denmark and Shanghai Source: IKEA Ltd.

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Svend Hollensen, Global Marketing, 17-167e © Pearson Education Limited 2016

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Svend Hollensen, Global Marketing, 17-187e © Pearson Education Limited 2016

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Is this good marketing communication in India? Is localization necessary?

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When this Gerber was indroduced in Africa

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AT&T’s Glocal ”Hands” Campaign In the spirit of “One World, One Phone,” AT&T’s 2009 “Hands” campaign highlights the company’s industry-leading international wireless services portfolio. In the campaign, human hands are painted to depict local countries’ symbols around the world that fall within AT&T’s international roaming footprint. The ads have appeared worldwide in print (both newspaper and magazine), social media (YouTube etc.), in creative outof-home applications, including on the backs of airplane tray tables, in airport terminals, wallscapes, billboards, transit stations, and taxi tops. Svend Hollensen, Global Marketing, 7e © Pearson Education Limited 2016

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AT&T Australia

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AT&T The Netherlands

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AT&T Norway

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AT&T England

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AT&T India

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AT&T France

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Article: Case Henkel: Glocalization used on Persil

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Case: Internationalization of German Henkel (Persil) to the Muslim countries = ”Glocalization” strategy

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Ashraf El Afifi Regional President and Corporate Senior Vice President for Laundry & Home Care in the Africa/Middle East region: “Persil Black or Persil Abaya is a perfect example of what our mix of global technology and local market expertise can achieve” Henkel Annual Report 2011

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Henkel:

2011: Persil Black (for Europe)

2007: Persil Abaya (for women in Arabic World) Svend Hollensen, Global Marketing, 7e © Pearson Education Limited 2016

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Svend Hollensen, Global Marketing, 7e © Pearson Education Limited 2016

http://www.adforum.com/creative-work/ad/player/34482549

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Rabia Z – Celebrity Endorsement

https://www.youtube.com/watch?v=NsFAMvJ9ELs

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https://www.youtube.com/watch?v=pyoWtI3QvK4 Svend Hollensen, Global Marketing, 7e © Pearson Education Limited 2016

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Glocal strategy: Product: The chemical formulations in Africa/Middle East and Europe have some common attributes, while the fragrances are tailored to cultural preferences. Package appearance and consumer communications are also regionally aligned.

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Glocal strategy: Communication: Persil Abaya was launched in the Gulf States through a mix of TV commercials & social media and a very successful viral online marketing campaign. An interactive social media website was set up and there was also a reality TV designer competition, the abaya having transcended from traditional garment to individual fashion statement. http://www.adforum.com/awardorganization/6651680/showcase/2015/ad/34512917 In the Western European markets, the consumer campaign relied mainly on classic TV advertising, complemented by social media activities such as Facebook.

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2011/12: New customer segment is added in Middle East: The firstever liquid detergent, especially for Men’s White Thobes is introduced across the Middle East

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https://www.youtube.com/watch?v=I8AkWQaQ_yc

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Results: I 2008 25% of women in the Golf region recognized Persil ‘as an expert in Abaya care’. This figure increased to 37% in 2010. The sales volume of Persil Abaya increased 24% in 2009 and further 33% in 2010. The Persil market share of liquid detergent in the Golf region increased from 25% in 2008 to 40% in 2010. This provided Persil with the first place in the liquid detergent market in 2010. The launch of Persil for White Thobes added a further two percent points market shares of the liquid detergent market in the Gulf region (Euromonitor, 2012). Svend Hollensen, Global Marketing, 7e © Pearson Education Limited 2016

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Results: Procter & Gamble (with Tide and Ariel brands) is still the Gulf region’s clear market leader in the overall detergent market, with 35-40% market share, followed by Unilever (OMO) with app. 15-20% market share. Henkel is no. 3 with app. 10% market share of the overall detergent market.

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Results: In Europe the launch of Persil Black resulted in increasing sales of the black liquid detergent (increased ‘scale of economies’), but in terms of market shares it only resulted in a small increase of the European liquid detergent market (less than one percent), but it created some media ‘buzz’ that Persil had actually used the same product as in Middle East. – however it should be remembered that Procter & Gamble (with Tide and Ariel brands) is still the Gulf region’s clear market leader in the overall detergent market, with 35-40% market share, followed by Unilever (OMO) with app. 15-20% market share. Henkel is no. 3 with app. 10% market share of the overall detergent market.

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Thanks for your attention Any Questions …..

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