19

Globalisation and international marketing

A Activity 19.1 − answer provided on Student’s CD-ROM.
Activity 19.2 (page 374): Zumo the energy drink
1

As a business analyst, write a report to Zumposa’s board of directors recommending an appropriate marketing strategy for this product in your country. It should contain: explanations of global marketing and localisation; advantages and disadvantages of both strategies for this product in your country; details of the changes you would recommend for the marketing strategy in your country. Don’t forget that your marketing strategy should be integrated. [20]
Advantages
Global marketing:
A pan-global marketing strategy adopts common products, branding and promotional campaigns across the world.

Disadvantages

• There will be economies

• The brand name may

•

•

•

of scale as the product is the same in each country.
Therefore, purchasing economies of scale can be utilised. No need for different flavours of Zumo.
Promotional costs will be reduced as the same advertising is used everywhere – thus no need to commission different adverts in different countries. Advertising already used in Spain can simply be translated for other markets.
The economy is increasingly globalised and there are fewer and fewer differences between tastes in countries around the world. The product may benefit from a common global identity. This has worked well for Coca Cola.

•

•

•

not be suitable in all countries, e.g. Plop, a popular Swedish chocolate bar, would struggle in the UK market. Does this apply to
Zumo?
Cultural and social differences exist between countries. Zumo may lose sales by trying to sell the same product in all countries. Economic differences between countries are significant. Will Zumo be too expensive in lessdeveloped countries?
Advertising may lack appeal if it is based on sports stars famous in
Spain – these stars may