Exercise 1: Multidomestic vs Global

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Exercise 1 Multidomestic vs Global

• Debriefing
• J.-C. Usunier International Marketing October
  2009

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General Outcomes (total ratings)

• 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

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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

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Global consumer?
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.

• 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

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Global product/service?
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,)
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Global industry?
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