mnc case studies

Journal of Business Management & Social Sciences Research (JBM&SSR)ISSN No: 2319-5614Volume 2, No.1, January 2013_________________________________________________________________________________

A Case Study Approach On Indian Companies AndGlobal Companies Entry In Foreign Markets – An Analysis Of Glocalization Strategies

Semila Fernandes, Asst. Professor – Marketing, Symbiosis Institute of Business Management, Bangalore,(Constituent of Symbiosis International University)

ABSTRACTThe present paper involved a study on Glocal communication strategy adopted by select global companies whileforaying into India and Indian companies foray into the foreign markets. Glocalization concept in specific termsimplies “Think Global and Act Local” which has been developed through Japanese business practices. Therequirement of this global localization idea arrived in the late 1980 s to bridge the gap between local, regional,‟national, global management of the businesses 20.PROBLEM STATEMENT “I do not see anything wrong with McDonald’s doing business in India. After all, it is not McDonaldizationthat we know of; It is a Big MaCcomodation” – As quoted by A Senior Bureaucrat in New Delhi 3. This isexactly what Glocalization concept in specific terms implies and is usually practiced by the global giants. Thepresent paper would highlight on the dimensions of Glocal strategy with a focus on cultural adaptability ofglobal MNC s who have entered into the Indian market across industries and Indian MNC s glocal strategy in‟ ‟foreign markets.“Going global” and “Going international” are entirely different. In order to go „global , one requires a global‟mindset; while to go „international , historically means to supply out of India. A blend of both is utmost‟necessary in creating a global organization system 24.

INTRODUCTIONAlan Rugman in his book “In The End ofGlobalization: Why Global Strategy is a Myth &How to Profit from the Realities of RegionalMarkets.” Says „Think regional, act local; forgetglobal. where-in he emphasizes that we have‟reached the phase of globalization death and arguesthat globalization never existed at all as envisioned6

.Today,tobesuccessfulmultinationalorganizations;theGLOCAL elementisindisputably important for all the managers,leaders, entrepreneurs with respect to variousflavors and dimensions of the business operations.The concept of GLOCAL strategy focuses on acore global standard strategy which has localelements and in turn signifies localization of theglobal strategy.The major „GLOCAL mix‟strategic components include organization mission& goal, organizational resources and Locus(Geography and Control). The synergy of the 3constituents facilitates localization, adaptation andcustomization of the worldwide resources, goalsand location of the firm 16.The focus of the paper would be studying one ofthe Global elements which is “the marketingstrategy” of select global companies entry in Indiaand Indian MNC s which have entered into foreign‟markets to provide a glocal perspective. Inparticular, the critical factors which will beexamined for each select company would be Brand

Building, Understanding the uniqueness of theconsumer, STP (Segmentation, Targeting &Positioning), Localization and Innovation of theproduct/service & Cultural Diversity. „Thinkdifferently about your India strategy is the mantra‟which shall be examined in each of the globalcompanies foray into the Indian market and viceversa 16.

METHODOLOGYThis research paper would follow a case studyapproach of select companies which would be fromthe Global Fortune 500 Companies for year 2011and other successful Indian multinationals from thevaried industries like Apparel (Nike), Beverages(CocaCola), Food Services (McDonalds), GeneralMerchandisers (Wal-Mart), Food ConsumerProducts (PepsiCo), Household & Personalproducts (P&G), LG Electronics, Hyundai Motors,Kellogg s, Toyota, Pizza Hut etc. Indian MNC s‟ ‟would include Dabur, TATA & Marico.The sample size would be approximately 3 Indiancompanies and 8 multinationals (global). Datacollection would be specifically secondary datafrom various conference papers, e-databases,articles, journals pertaining to information on theGlocal element – Marketing strategy of the selectmultinational companies viz-a-viz their ability toget connected culturally into the local communitiesthrough the global network.

www.borjournals.com Blue Ocean Research Journals 30


In a nutshell, the first study would be a qualitativestudy, to analyze the marketing element ofGlocalization with focus on the various ways theglobal multinationals have forayed into India andvice-versa by analyzing the local customers and thelocal markets.The second study would focus on the cultural fitstrategy adopted by the multinationals to meet andsuit the needs of the local consumers.Understanding how global / Indian brands adapt tothe varied requirements of the consumer base is achallenge that lies ahead of every marketer.

overseas with its products exported to more than 50countries which were serviced locally by thecompany s offices and representatives ‟ 23.The template for Dabur s international operations‟focuses on the aspect of localizing whereby thetechnology of the new geography should be in syncwith Dabur s technology for adapting to suit local‟needs. Local manufacturing units were also set upfor the portfolios of the Asian markets (Pakistan,Nepal, Bangladesh, Sri Lanka, Malaysia). Thusunderstanding the local Diaspora was the primeconcern for the company at large. In Nigeria(customers beyond the Indian Diaspora), under theproduct portfolio of skin care, Dabur launched anherbal soap with localized ingredients as Nigerianmarket preferred oral care and homecare over hairoil segment where Dabur was prominent 23.

TATA GROUP: Engineering (Tata Motors,Daewoo-2004, Jaguar and land rover-2008),Materials(Tata steel, Corus: UK, 2007),IT(TCS), Consumer Products (Tata Tea, UK-2000), Energy(Tata Power, Indonesia-2007),Chemical(TataChemicals:Indomaroc,Morocco-2005), Services (Taj Hotels, Starwoodgroup: Australia, 2005)Ratan Tata, the present Chairman of the TataGroup got Tata into the competitive landscape intothe global arena. The tata group followed a“cajoling” approach to top-down leadership beingTata s corporate structure and made every‟company global thinking as part of their businessplans. The group made sure that a workable placeon the ground is present in the geographies it wouldexplore – The USA, UK, China, Bangladesh andSouth Africa. Tata philosophy was to think globallocally to be a contributing part of those countriesinto which it expands where the motive was to beseen as a local company than an Indiancompany. Thus local management and working toaugment and support them was the focus point. Thelocal strategy adopted operating with the localgovernment or culturally by involving in thevarious activities like the Indian food festival of themusic program. Tata Tea s global acquisition with‟Tetley group of UK marked the beginning of Tata s‟acquisition history. Tata Group s partnership‟strategy was to see the two entities of acquisitions(new entity) as one entity thinking of “a globalmind set” 22.

Consumer Packaged Goods (MARICO): India(1988), Bangladesh (late 1990’s):Marico, although a household name in India, wasunknown internationally until expansion intosimilar markets which made it internationalplayers. Parachute is Marico s flagship brand of the‟coconut based hair oil category which was unableto export until early 1990 s because the‟

CONCLUSIONS ANDIMPLICATIONSThe scope of the research paper was to discuss theconcept on glocal communication strategy adoptedby various global and Indian companies whileentering the foreign market. This analysis anddiscussions has been administered by selectingcertain successful companies from the Fortune 500,2011 listing and other successful Indian companieswhich have made a mark in India. This concept anddiscussion can be extended through primary datacollection methods to further strengthen the topicinto various dimensions of global, local and glocalstrategic implementation.KEYWORDS: Glocal, Global, localization,globalization

DATA COLLECTIONENTRY OF INDIANFOREIGN MARKETS

COMPANIES IN

Consumer Packaged Goods (Dabur India Ltd.):India (1884), Persian Gulf region of the MiddleEast (1987):Dabur India Ltd. is among the top CPG companiescatering to packaged household groceries andsupplies consumed readily and regularly, includingfoods, personal care products and detergents.Dabur identified opportunities in the overseasmarket and formed a subsidiary named DIL(DaburInternational Ltd.) and in 1987 started its overseasexpansion of exporting hair oil to the Gulf marketsand in 2003 became an internationally respectedand successful corporation by occupying herbal,natural and ayurvedic platforms throughglobalization. In these foreign markets, identifyingconsumer needs, developing localized products andcreating niche to drive at long term growth wereDabur s domestic competences and capabilities and‟these competencies helped Dabur build on skills inproduct engineering and localization in theoverseas markets as well. For instance: Manyplayers used coconut in hair oil while Dabur usedamla which has its roots in traditional medicine. By2006 the company had set up 5 manufacturing units



government saw vegetable oils which is anessential commodity always in short supply.Marico set up local manufacturing plant in marketswhose consumption pattern was very similar toIndian markets which would be within the South-Asian markets. However, to penetrate beyondSouth Asia, Marico realized that it needed toinnovate and move from Indian-centric approach tothe one that serves the needs of the local markets 21.Marico learned that Arab consumers did not preferthe smell of coconut oil; they preferred lessstickiness and would use the product in anenvironment with high water chlorination whichdamaged hair. To address this concern, Maricolaunched a reformulation of the product thatcounteracted the harmful effects of chlorine 21.

ENTRY OF FOREIGNINDIAN MARKET

COMPANIES IN

consumers) facilitated McDonald s „to venture into‟India. The first Indian outlet by McDonalds wasopened in October 1996 in Vasant Vihar which isan affluent residential colony in New Delhifocusing on the target segment of young people,children and young parents. And as of November2004 the total outlets have been 58 mostly in theeastern and the northern part of India with plans ofopening more than 90 in the coming three yearsspan. The lesson to be imbibed by other foodservice companies from McDonald s is that how‟could they successfully sold their hamburger chainin the cultural zone of India which is dominated bynon-beef, no pork, fully vegetarian and regionalfood tastes and moreover in a market where cow issacred. Thus the idea of replacing its core productwhich is „beef based Big Mac into „mutton based‟Maharaja Mac in India was conceptualized which‟again caused a serious concern in terms ofmarketing a burger which is made other than beef.But the mutton burger did show tremendous hit andthe company now markets other products to itsgrowing Hindu clientele. Thus building brands inIndia was not an easy go for McDonald s ‟ 16.Success Mantra s in India with specific focus on‟cultural sensitivity:xEmphasis on Local Management – set up jointventures with two local entrepreneurs in Mumbaiand Delhi on 50:50 basis.xPolitically correct strategy – Right frombeginning beef and pork was a “complete no-no”considering Indian population to be 80% Hinduswho consider cow as sacred and 150 million ofMuslim population who do not eat pork.xEmployment Opportunity – Every expansion ofMcDonald s in India is well accepted by the Indian‟government.xGreen Sensitivity – McDonald s have constituted‟a special fund to support green initiatives which isaddressed by India prominently.xCorporate citizenship – social responsibility andgiving back to Society has been promisinglyundertaken by McDonald s through various‟charitable and community programs.In a nutshell, the premier American fast foodculture as indicated by McDonald s fits well with‟the Indian socio-cultural landscape 3.

General Merchandisers (Wal-Mart): Arkansas(1962), India (2007): Number 1 in generalmerchandisers, 1st rank (Fortune 500, 2011)Wal-Mart s positioning strategy “Always low‟prices” targets middle-class and lower-middle classcustomers (300 million approx.). Localization ofthe product mix being one of the prime corporatevalues Wal-Mart holds, discount retailing has beena multi-local business agenda of the company witha local partner - Bharti Enterprises, localgovernment, local purchasing power, local

Beverages (CocaCola): USA (1886), India(1993): Number 1 in Beverages, 70th rank(Fortune 500, 2011)Coca-Cola entered into India in 1993 after a 16year absence since 1977 and continued to struggleand crack the Indian market in terms of profit until2006 16. It recognized that a one stop solution or asingle global strategy won t serve the purpose and‟hence local executions were the elements thoughtoff by Coke. Its brand localization strategy waswith reference to the two India s.‟India A: “Life ho to aisi” – This segmentrepresented metropolitan and larger towns whichaccount for 4% of the country s population. This‟audience gave priority to their social bonding andaspirations and hence Coca-Cola s tag line “Life ho‟to aisi” suited their needs and aspirations.India B: “Thanda Matlab Coca-Cola” - includessmall towns and rural segment which account for96% of India s population which needed out-of-‟thirst quenching ability to be fulfilled. Locallanguage and idioms appropriately used by Coca-Cola in its advertising campaigns added the flavorto the marketing plan. “Thanda” means cool whichalso signifies cold beverages and on translation“Coke means refreshment” suited the needs of thetarget segment.Local employment andcorporate socialresponsibility with focus on community andenvironment related – was another manner inwhich Coca-Cola managed its foray into the Indianmarket and made India accept this global giant 11.

Food Services (McDonald’s): USA (1940), India(1996): Number 1 in the food services, 111thrank (Fortune 500, 2011)The wide range of economic reforms in 1990 s and‟Indian government liberalizing policies in Indiaand the huge consumer market (300 million



economies of scale and local logistics. This localgame logic was the driving force for Wal-Mart s‟success 1. Wal-Mart opened its first store in 2007 inIndia and as per the company; their policy hasalways been “At Wal-Mart, we go to great lengthsto ensure our international stores reflect the localneeds and wants of our customers” 14. Hence localretailing always requires a multi-local businessenvironment which Wal-Mart has encashed on inIndia after getting a success hit into Mexico marketand by committing mistakes into its non-US marketforay like Brazil, Hong Kong, Korea etc 1.

Food Consumer product (Kellogg): Michigan(1906), India (1994): Number 5 in Foodconsumer product, 199th rank (Fortune 500,2011)Kellogg Company ventured into India inSeptember 1994 with cornflakes, wheat flakes andBasmati rice flakes as its initial offering. Itsproducts failed in the Indian market despitecontinuous support in terms of managerial,financial and technical. This concept of eatingcornflakes as a breakfast cereal was anunimaginative proposition for the Indian marketthat would prefer some hot vegetables as theirbreakfast menu. Indians have the habit of havinghot or lukewarm milk which makes the flakessoggy as opposed to the West. Indian women wereused to the breakfast palate of being hot, fresh andsavory. This made Kellogg s change their strategy‟and began to innovate with the new productdevelopment of wheat and rice cereals with flavorsappealing to the Indian local cultural habits. Thelaunch of Chocos wheat scoops coated withchocolate and Frosties with sugar frosting madeKellogg realize the importance of indianizing itsproducts 8. Thus studying the local tastes closely isthe only mantra while going global whichKellogg s missed studying specifically the‟anthropology and the cultural expectations 2. Nowwith the breakfast routine change with theinvention of new products, cornflakes appetite toostarted growing 16. Furthermore Kellogg s realized‟that the American culture would never be acceptedby Indians and hence they started adapting,modifying and sculpting its business proposition inIndia 4.

Motor Vehicles (Toyota): Japan (1945), India(1997)Japanese auto giant Toyota foray into India wasworth appreciably. It clearly understood the meansto enter the Indian market which was focus on themiddle and upper class segment as the economyand small car segments were already crowded withless opportunity to do business. Also with theeconomy booming and the rise of purchasingpower, consumers were willing to upgrade their

models and hence wouldn t mind paying extra for a‟better and premium product. With thisorganizational mission and goal, Toyota launchedCamry and Corolla which are the middle andhigher car segments which have been a greatsuccess for the company. Thus “affordability” wasthe driving success factor for Toyota which wasunderstood well pertaining to the Indian customers16

. Toyota focused on minivans which had verylittle competition and targeted large and biggerfamilies. This move facilitated Toyota to have thecontrol over the top share of automobiles 13.

Music TV Network (MTV): USA (1981), India(1996)India is a great venue to conduct business inTelevision because of the country s vast middle‟class segment in the tantalizing market. MTV s‟passage into India is a lesson well learntconsidering the population of 1 billion withmajority in the poor segment and the middle classgrowing exponentially. With the economicalgrowth, advertising also grows rapidly as a resultthe first time purchasing and consumption of creditcards, TV sets, mobile phones, CD players, andautomobiles are also on rise. India enjoys andcelebrates its democracy in the television and printmedia with its flamboyant film and music industryunlike China where-in the central-governmenttightly controls television and print. Hence insearch of growth, we have the global entertainmentgiants who are maturing in the US venturing intoIndia and Asia. The streets of Mumbai being thenation s entertainment capital and India having a‟very chaotic, noisy and overcrowded medialandscape, it was very difficult for media tonavigate freely. MTV India was well known fortwo main reasons:xIts existence in doing business since 1991, muchbefore any of its competitors arrived.xMTV being the best global TV network(building original channels) having performedbetter than CNN, [V] or any other channel in termsof spreading its brand and conducting localprograms with local staff in every nook and cornerof the world.MTV networks 72 international channels covering321 million homes spread across Europe, Asia,Latin America, Australia and Canada generatingannual revenue of approx. $1billion from outsidethe US. Thus MTV Company has taught otherplayers to do business by understanding the Indianculture. MTV at no stage bombarded the Indianteenagers with American programming (preferringrap and rock music) rather tailored its operations tofit the masses. India s cable TV industry was‟another puzzle for MTV which has too manychannels fetching few advertising dollars and inturn competes with channels like news, sports, soap



opera/entertainment channels. Doing businessdifferently by not just looking at the population(size of the market) numbers of making hugemoney but reflecting on the local culture is whatmost multinationals fail today. MTV Bhakra, MTVroadies, MTV Web Watch, MTV Kitne Mast HaiZindagi being some innovative programs launchedby MTV in a different paradigm.Cultural fit: MTV is programmed differently indifferent countries. China reflects upon familyvalues, nurturing and a lot of romantic songs;Indonesia consisting of Islamic population calls onconducting prayer 5 times a day on the MTVchannel; Brazil follows with a sexy feel; Italydepicts style, elegance and food shows; Japanbeing tech savvy; and MTV India focuses on color,self-efficacy, full of humor and huge street culture.The fact remains that of the entire employeestrength working for MTV International, onlyaround 10% would be Americans. MTV being anational music channel now also competes withregional music channels showing music in Tamil,Telegu and Punjabi 5.

Electronics&Telecommunications(LGElectronics): Korea (1958), India (1993):Extensive market research, product localization andaggressive and large scale advertising campaignshas been the key drivers for Korea s LG‟Electronics in India to be successful even during its

early phase on entering into the Indian market.Specifically speaking of the aggressive advertisingcampaigns, the cost was borne by its headquartersin Seoul and not by increasing the price of theproduct which gave LG huge dividends. Great dealof support from its corporate office to its localsubsidiary in India was the advantage LG had torun its operations into the Indian market. Anotherstrategy that worked well for LG was that itsKorean firm provided huge comfort for Koreanexpatriate employees/Managers living in India.“Korean Villages” were created and Koreanspeaking cook/maid was arranged from Koreawhich helped them to adapt more flexibly into theIndian market thereby increasing their productivityand motivation 13.This clearly indicates that „Investing in one s‟brand is very important which every Head‟Quarters should understand before foraying intoany other market which Korea s LG Electronics‟has fully acknowledged and practiced 16. LGfocuses on customizing its products based on thecustomer lifestyle. For e.g. Since in many Indianfamilies, washing machine is operated by housemaids who are either illiterate or can t read in‟English, LG's alternate strategy was to incorporatespeech technology that allows the instructions inthe various local languages. Such innovations thatfit every customer s lifestyle helped LG India to‟connect to its customers 9.

DISCUSSIONS AND IMPLICATIONS:

INDIAN COMPANIES ENTRY IN FOREIGN MARKETSTABLE 1: DaburMNC NAME

ORIGININDUSTRYRANKING

TARGET AUDIENCE

INDIA (1884)CPG (Consumer Packaged Goods)Dabur ranked 200 in the Fortune India 500 list that ranks India's 500largest corporations – 2010-11 (Dabur, 2013).Priced for and targeted at the mass market (Arab consumer – Arabfemale, Asian consumer – Asian male, African consumer – Africanmale & female)Adopting local Diaspora, using local ingredientsx The template for Dabur s international operations focuses on the‟aspect of localizing whereby the technology of the new geographyshould be in sync with Dabur s technology for adapting to suit local‟needs.x Local manufacturing units were also set up for the portfoliosof the Asian markets (Pakistan, Nepal, Bangladesh, Sri Lanka,Malaysia). x In Nigeria (customers beyond the Indian Diaspora),under the product portfolio of skin care, Dabur launched an herbal soapwith localized ingredients.xChallenge rested on Dabur when it entered the Nigerian market(African market which was beyond the Indian Diaspora). Dabur hadtraditional strengths in personal care (hair oil) and not oral care andhome care which the African market was dominant in. Hair careproducts sold in Nigeria are cosmetics and the consumers are used to

GLOBAL STRATEGYLOCAL STRATEGY (Entered UAE–1987)

GLOCAL STRATEGY (CULTURALFIT)



using electric coils not creams which is Dabur s forte.‟xDabur Herbal Toothpaste and Dabur Herbal Fresh Gel wasmanufactured for the African consumer care market (Dabur, analysis).

TABLE 2: MNC NAME

ORIGININDUSTRY

Tata Group

INDIA (1868)Engineering (Tata Motors, Daewoo-2004, Jaguar and land rover-2008),Materials(Tata steel, Corus: UK, 2007), IT(TCS), Consumer Products(Tata Tea, UK-2000), Energy(Tata Power, Indonesia-2007),Chemical(Tata Chemicals: Indo maroc, Morocco-2005), Services (TajHotels, Starwood group: Australia, 2005)Tata Motors ranked 359 and Tata steel ranked 370 , Fortune 500 list2011Driving for Multi-industry global leadershipTo be seen as a local company than an Indian company.Tata philosophy was to think global locally to be a contributing part ofthose countries into which it expands to experience the pain andecstasies of the community.Thus local management and working to augment and support them wasthe focus point.x The local strategy adopted operating with the local government orculturally by involving in the various activities like the Indian foodfestival of the music program.

RANKING

TARGET AUDIENCEGLOBAL STRATEGYLOCAL STRATEGY


TABLE 3:MNC NAMEORIGININDUSTRYRANKINGTARGET AUDIENCEGLOBAL STRATEGY

LOCAL STRATEGY (EnteredBangladesh– late 1990’s(Marico)


MaricoINDIA (1988)CPG (Consumer Packaged Goods)-Targeted at the mass market having the household name in IndiaExpansion into similar markets but realized that it had to move fromIndia-centric approach to serving local needs of the local markets topenetrate further.x Set up local manufacturing plant in markets whose consumptionpattern was very similar to Indian markets which would be within theSouth-Asian markets;xHowever, to penetrate beyond South Asia, Marico realized that itneeded to innovate and move from Indian-centric approach to the onethat serves the needs of the local markets.x Marico learned that Arab consumers did not prefer the smell ofcoconut oil; they preferred less stickiness and would use the product inan environment with high water chlorination which damaged hair. Toaddress this concern, Marico launched a reformulation of the productthat counteracted the harmful effects of chlorine.

ENTRY OF FOREIGN COMPANIES IN INDIAN MARKET

TABLE 4: MNC NAME

ORIGININDUSTRYRANKINGTARGET AUDIENCE

Coca-Cola

U.S.A (1886)BeveragesNumber 1 in Beverages, 70th overall (Source: Fortune 500, 2011)Most Coke products satisfy the requirements of all age groups ranging



from health conscious to average human being.Coca-Cola adopts Individual branding strategy as its different productsare given own names like Fanta, Sprite, Coca-Cola etc. Television,radio and magazines are the most common promotion mix adopted byCoa-cola.Its brand localization strategy was with reference to the two India s.‟India A: “Life ho to aisi”, India B: “Thanda Matlab Coca-Cola”. Localemployment and corporate social responsibility with focus oncommunity and environment related.It recognized that a one stop solution or a single global strategy won t‟serve the purpose and hence local executions were the elementsthought off by Coke. Global Brand Coke promoted using punch linessuiting Indian culture.

McDonald s‟

U.S.A (1940)Food ServicesNumber 1 in the food services, 111th rank overall (Source: Fortune500, 2011)Young people, children and young parents.core product “ beef based Big Mac”xReplacing its core product which is „beef based Big Mac into‟„mutton based Maharaja Mac in India. xSuccessfully sold their‟hamburger chain in the cultural zone of India which is dominated bynon-beef, no pork, fully vegetarian and regional food tastes andmoreover in a market where cow is sacred. xThe mutton burger didshow tremendous hit and the company now markets other products toits growing Hindu clientele.x Emphasis on Local Management x Politically correct strategy -beef and pork was a “complete no-no” xEmployment OpportunityxGreen Sensitivity x Corporate citizenship – social responsibility

GLOBAL STRATEGY

LOCAL STRATEGY (Entered India -1993 after a 16 year absence since 1977)


TABLE 5: MNC NAME


TARGET AUDIENCEGLOBAL STRATEGYLOCAL STRATEGY (Entered India –Oct, 1996)


TABLE 6: MNC NAME


TARGET AUDIENCE

GLOBAL STRATEGY

Wal-Mart

Rogers (Arkansas - 1962) 19

General MerchandisersNumber 1 in General Merchandisers, 1st rank overall (Source: Fortune 500, 2011)Wal-Mart s positioning strategy “Always low prices” targets middle-‟class and lower-middle class customers (300 million approx.).Global presence in Mexico, Brazil, Argentina, Hong Kong, Indonesia,Korea, China, India – and in every country Wal-Mart says “Discountretailing is a very „multi-local business where local market share is‟critical”.Localization of the product mix being one of the prime corporatevalues Wal-Mart holds, discount retailing has been a multi-localbusiness agenda of the company with a local partner - BhartiEnterprises, local government, local purchasing power, localeconomies of scale and local logistics.As per the company; their policy has always been “At Wal-Mart, wego to great lengths to ensure our international stores reflect the localneeds and wants of our customers”

LOCAL STRATEGY (Entered India –August, 2007)


TABLE 7:



MNC NAME


TARGET AUDIENCE (India)

GLOBAL STRATEGY

Kellogg

Michigan (1906) 12

Food Consumer ProductNumber 5 in Food Consumer Product, 199th rank overall (Source:Fortune 500, 2011)Breakfast Cereal (Cornflakes) for the Indian market – promoted bytargeting Indian WomenConcept of „Cold Reception – Consuming breakfast cereal with‟something cold : i.e. pouring cold milk on your breakfast cereal likecornflakes which was a success in America, Britain, Japan, Korean andChina but a disaster in India.Indians have the habit of having hot or lukewarm milk which makesthe flakes soggy as opposed to the West. Indian women were used tothe breakfast palate of being hot, fresh and savory.They began to innovate with the new product development of wheatand rice cereals like Chocos & Frosties with flavors appealing to theIndian local cultural habits.

LOCAL STRATEGY (Entered India –September, 1994)


TABLE 8: Other Global Companies Success story in India: ToyotaMNC NAME

ORIGININDUSTRYRANKINGTARGET AUDIENCE (India)GLOBAL STRATEGY

LOCAL STRATEGY (Entered India –1997, Toyota Kirloskar Motor Pvt. Ltd.)18


Japan (1945) 17

Moto Vehicles - AutomobileNot in the listing of Fortune 500, 2011Middle and Upper class segmentToyota philosophy in global markets – localize / adapt the design andproduction facilities of its products to build long-term relations withthe suppliers and labor of the local market.x„Affordability of the Indian consumers : It clearly understood the‟means to enter the Indian market which was focus on the middle andupper class segment as the economy and small car segments werealready crowded with less opportunity to do business.Toyota launched Camry and Corolla which are the middle and highercar segments which have been a great success for the company. Toyotafocused on minivans which had very little competition and targetedlarge and bigger families.

TABLE 9: Other Global Companies Success story in India: MTV (Music Television)MNC NAME

ORIGININDUSTRYRANKINGTARGET AUDIENCE (India)GLOBAL STRATEGY

U.S.A (1981)Music TV NetworkNot in the listing of Fortune 500, 2011Middle class segment, youth cultureMusical genres mostly pop music, soft rock, Latin pop, and hip hopmusic was the programming culture targeted towards youth at theglobal scenario especially in Latin America. Each of the music genresincluded music in English and Spanish language.xMTV at no stage bombarded the Indian teenagers with Americanprogramming (preferring rap and rock music) rather tailored itsoperations to fit the masses. x MTV Bhakra, MTV roadies, MTVWeb Watch, MTV Kitne Mast Hai Zindagi being some innovativeprograms launched by MTV.xMTV is programmed differently in different countries. x MTVIndia focuses on color, self-efficacy, full of humor and huge streetculture. x MTV being a national music channel now also competes

LOCAL STRATEGY (Entered India –1996, and is now part of the Viacom 18Media Pvt. Ltd based in Mumbai.)




with regional music channels showing music in Tamil, Telegu andPunjabi.

TABLE 10: Other Global Companies Success story in India: LG ElectronicsMNC NAME

ORIGININDUSTRYRANKINGTARGET AUDIENCE (India)

GLOBAL STRATEGY

LOCAL STRATEGY (Entered India –1993) 10

Korea (1958)Electronics & TelecommunicationsNot in the listing of Fortune 500, 2011Cater to the needs and requirements of the diverse customers, primarilyfocus on semi-urban towns and rural markets.Extensive market research, product localization and aggressive andlarge scale advertising campaigns has been the key drivers for Korea s‟LG Electronics."One reason LG is successful in India is that we listen carefully to ourcustomers. We have realized that not just localization, but micro-localization, is required." – According to an official of LG Electronics9

.LG focuses on customizing its products based on the customerlifestyle. E.g. Since in many Indian families, washing machine isoperated by house maids who are either illiterate or can t read English;‟LG's alternate strategy was to incorporate speech technology thatallows the instructions in the various local languages. Innovations thatfit every customer s lifestyle helped LG to connect to its customers ‟ 9.


CONCLUSIONS ANDIMPLICATIONSThe scope of the research paper was to discuss theconcept on glocal communication strategy adoptedby various Indian and Global Companies whileentering the foreign market. This analysis anddiscussions has been administered by selectingcertain successful foreign Companies from theFortune 500, 2011 listing and other successfulIndian Companies which have made a mark inIndia and foreign market. This concept anddiscussion can be extended through primary datacollection methods to further strengthen the topicinto various dimensions of global, local and glocalstrategic implementation.

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