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Presented by- Group No. 01

Pradeep Bandal-04

Anup Nair-12

Dinesh More-19

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Ethnocentric: everything is centered on thedomestic market.

Polycentric: several important foreign marketsexist.

Regiocentric: the market is composed of severallarge economic regions.

Geocentric: the world is one large global market

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EPRG Model - Characteristics

Ethnocentric Polycentric Geocentric

Approach International

operations are

secondary

Each country is

relatively

independent

The world is one

common market

Vision Centered on thedomestic market

Each market isunique

Global vision ofthe world

Priority Searching for

identical

segments in

foreign markets

Taking into

consideration

differences in

foreign markets

Unifying

differences in the

world market

Planning center National

headquarters

Subsidiary in

each country

World

headquarters

Structure International

division

Division for

each zone

Matrix structure

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EPRG Model - Characteristics

Ethnocentric Polycentric Geocentric

Staff Citizens from the

domestic market

Citizens from

each market

Most qualified

Marketing

strategy

Extension Adaptation Extension,

Adaptation,

Creation

Management

style

Centralized Decentralized Integrated and

interactive

Production Domestic Local Low-cost

sources ofsupply

Partnerships Agent, licensing Joint-ventures Strategic

alliances

Performance

measures

Domestic market

share

Local market

share

World market

share

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The EPRG model is a framework for a firm tobetter pinpoint its strategic profile in termsof international business strategy. It contains

four elements - Ethnocentrism, Polycentrism,Regiocentric and Geocentrism.

The importance of the EPRG model is mainlyin the firm's awareness and understanding of

its specific focus.

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The EPRG Concept revolves around the grandfact that any companys response to global

market opportunities depend greatly on the

managements assumptions & beliefs, as tohow it views the new market opportunity,how it plans to enter the foreign market,how it views the culture, preferences ofconsumers in a foreign market, etc.

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A person who assumes his/her home countrysuperior to the rest of the world is said tohave an ethnocentric orientation.

It means company personnel see onlysimilarities in markets & assume the products& practices that succeed in the homecountry will, due to their demonstrated

superiority, be successful anywhere. At some companies, opportunities outside

the home country are ignored. Suchcompanies are called domestic companies.

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An ethnocentric firm always looks for helpfrom the home country government.

They adhere to the notion that the products

that succeed in the home country aresuperior & therefore can be sold everywherewithout adaptation.

Valuable managerial knowledge & experience

in local markets may go unnoticed.

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Godrej Consumer Products (GCPL)

is a leader among India's Fast Moving ConsumerGoods companies, with Personal and Home CareProducts. Its brands, which include Cinthol, No.1, Expert and Ezee, among others, are householdnames across the country. Branch Offices inMumbai, Delhi, Kolkata and Chennai ensure pan-India coverage, while factories located at

Malanpur (Madhya Pradesh), Thana Katha (Himachal Pradesh), Guwahati (Assam) and

Sikkim cater to the diverse requirements of itsproduct portfolio.

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It is the opposite of ethnocentrism.

The term polycentric describesmanagements belief that each country in

which a company does business is unique. This assumption lays the groundwork for

each subsidiary to develop its own uniquebusiness & marketing strategies in order to

succeed.

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A polycentric firm (P) is one that exports tonot just one market but to several markets.

It looks for customers in different markets.

Polycentric firm is the number of foreignmarkets served and the fact the latter ismore actively involved in soliciting foreignbuyers.

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Godrej Consumer Products (GCPL) Godrej Global Mideast FZE was established in

Sharjah with the objective of distributing GodrejFMCG products in the Middle Eastand has astrong network of distributors and salespersonnel in countries like Oman, Saudi Arabia,Kuwait and Bahrain. GCPL acquired GodrejGlobal Mideast FZE on October 1, 2007.

With the acquisition of Keyline Brands in theUnited Kingdom, Rapidol and Kinky Group, South

Africa and Godrej Global Mideast FZE, a 100%subsidiary of Godrej International, GCPL nowowns international brands and trademarks inEurope, Australia, Canada, Africa and the MiddleEast. At GCPL

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Nescafe

Coffee has the distinction of being the secondmost-traded commodity in the world, after oil. Itis also one of the world's most popular

beverages. Nescafe has emerged as a world leader in the

coffee industry and the word Nescafe' hasbecome almost synonymous to coffee. On anaverage around 3000 cups of Nescafe coffee aredrunk every second all over the world.

Nescafe is also the leader in India and has beenquite successful in capturing a substantialmarket share over a period of time.

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Nescafe's key strengths and weaknesses andhave tried to identify the possible

opportunities and threats to the companybased on these strengths and weaknesses andfound out that Nescafe is the leading brandin the pure coffee segment with an all India

market share of around 55 %.

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Nestle:

Nestle market its products in 130 countries

across the world.

Nestle sells over a billion product every day. Nestle put the nutrition as the core of their

business,

Nestle main focus is on health andwellness. The main consideration of Nestle

is

Good Food, Good Life to all consumer.

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Food and beverages plays a important role inpeoples life- not only because of enjoymentand social pleasure of eating together, butmore in more terms of personal health andnutrition.

Nestle is committed to provide theircustomer, consistent quality, safety as well

as value for money and convenience.Great taste is the fundamental of their

products and consumer appreciation of goodfood.

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Coca-Cola is a company that is known worldwidefor its product.

Coca-Cola is an internationally recognized drink.

It is a drink that spans all ages, colors, races,and countries.

The Coca-Cola Company is the worlds leadingmanufacturer, marketer, and distributor ofnonalcoholic beverage concentrates and syrups.

The worlds headquarters are located in Atlanta,

Georgia, with many other locations around thecountry.

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The Company and its subsidiaries employ nearly31,000 people around the world. Syrups,concentrates and beverages bases for Coca-Cola,

the companys flagship brand, and over 230other Company soft-drink brands aremanufactured and sold by the Coca-ColaCompany and its subsidiaries in nearly 200countries around the world (Virginia, 1)

The company has been around for over 100years, and has used this time to perfect its

marketing strategy. The success of the companywas built on many people with the great businessknowledge and know-how to take a simple drink,and make it

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Management seeks to develop an integratedregional strategy to market products in theparticular identified region.

Here, the firm researches the markets,understands customers and competition inthe region and evolves competitivestrategies.

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It may examine several market entrystrategies but common ones are jointventures, or subsidiary operations in thetarget region.

For example, a firm targeting Europe mayset up a manufacturing base in one of theEuropean countries to bypass EC's

requirements or quota restrictions.

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Pepsi Co, Inc. is currently operating in China. Ithas been in the country since 1982, when itstarted its first operation in Shenzhen and laterestablished 30 joint ventures all over thecountry.

Recently Pepsi Co is stepping up its investmentsand interests in the emerging market of China.With 1.34 billion people and a Chinese softdrinks market forecasted to have a $ 40 billionvalue by 2014,

its easy to see why PepsiCo is investing in thiscountry now with government plans to improvethe infrastructure, distribution will furtherimprove as well, making it easier to get Pepsi tothe Chinese consumers.

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Asian Paints aims to become one of the top five Decorativecoatings companies world-wide by leveraging its expertisein the higher growth emerging markets. Simultaneously,the company intends to build long term value in theIndustrial coatings business through alliances withestablished global partners.

Asian Paints is Indias largest paint company and Asiasthird largest paint company, with a turnover of Rs: 96.32billion. The group has an enviable reputation in thecorporate world for professionalism, fast track growth, andbuilding shareholder equity. Asian Paints operates in 17countries and has 24 paint manufacturing facilities in the

world servicing consumers in over 65 countries. BesidesAsian Paints, the group operates around the world throughits subsidiaries Berger International Limited, ApcoCoatings, SCIB Paints and Taubmans.

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Forbes Global magazine USA ranked Asian Paintsamong the 200 Best Small Companies in theWorld for 2002 and 2003 and presented the 'Bestunder a Billion' award, to the company.

Asian Paints is the only paint company in theworld to receive this recognition. Forbes has alsoranked Asian Paints among the Best under aBillion companies in Asia In 2005, 06 and 07.

The company has come a long way since its smallbeginnings in 1942. Four friends who were

willing to take on the world's biggest, mostfamous paint companies operating in India atthat time set it up as a partnership firm. Overthe course of 25 years Asian Paints became acorporate force and India's leading

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paints company. Driven by its strongconsumer-focus and innovative spirit, thecompany has been the market leader inpaints since 1968. Today it is double the size

of any other paint company in India. AsianPaints manufactures a wide range of paintsfor Decorative and Industrial use.

Asian Paints has always been ahead when it

comes to providing consumer experience. Ithas set up a Signature Store in Mumbai whereconsumers are educated on colours and howit can change their homes.

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The company views the entire world as apotential market.

Company strives to develop integrated worldmarket strategies.

It views similarities & differences in markets &countries.

It seeks to create a global strategy responsive toneeds & wants.

These firms evolve strategies to globallymaximize their resources.

They are not interested in the market shares ofjust one market but keenly pursue goals ofglobal market leadership.

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McDonald's is the world's leading food serviceretailer with more than 33,000 restaurants in118 countries serving more than 67 millioncustomers each day.

McDonald's ensures that the evolution to aDevelopment Licensee takes place only afterthe financial strength, viability, profitability

and long - term sustainability of the businessis assured.

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McDonald's Celebrating over 15 years ofleadership in food service retailing in India,

McDonald's India now has a network of over

250 restaurants across the country.McDonald's India is a leader in the food retailspace, with a presence of more than 250restaurants serving more than 6.5 lakh

customers daily in India.

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Mc Donald's India is an employer of opportunity, providingquality employment and long-term careers to professionalsacross the country. The average McDonald's restaurantemploys 40- 60 people from crew to restaurant manager.

McDonald's invests in its employees, leveraging world class-training inputs to create ambassadors of the brand and

creating food service professionals with global outlook. The brand currently has over 10,000 employees in India.

McDonald's worldwide is well known for the high degree ofrespect for the local culture of each market it operates in.In line with this respect for local culture, India is the firstcountry in the world where McDonald's does not offer anybeef or pork items.

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