Journal of Business Management & Social Sciences Research
(JBM&SSR) ISSN No: 2319-5614Volume 2, No.1, January 2013
_________________________________________________________________________________
www.borjournals.com Blue Ocean Research Journals30 A Case Study
Approach On Indian Companies And Global 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) ABSTRACT The present paper involved a study on Glocal
communication strategy adopted by select global companies while
foraying into India and Indian companies foray into the foreign
markets. Glocalization concept in specific terms
impliesThinkGlobalandActLocalwhichhasbeendevelopedthroughJapanesebusinesspractices.The
requirement of this global localization idea arrived in the late
1980s to bridge the gap between local, regional, national, global
management of the businesses 20.PROBLEM STATEMENT I do not see
anything wrong with McDonalds doing business in India. After all,
it is not McDonaldization that we know of; I t is a Big
MaCcomodation As quoted by A Senior Bureaucrat in New Delhi 3. This
is exactly what Glocalization concept in specific terms implies and
is usually practiced by the global giants. The present paper would
highlight on the dimensions of Glocal strategy with a focus on
cultural adaptability of global MNCs who have entered into the
Indian market across industries and Indian MNCs glocal strategy in
foreign markets. Going global and Going international are entirely
different. In order to go global, one requires a global
mindset;whiletogointernational,historicallymeanstosupplyoutofIndia.Ablendofbothisutmost
necessary in creating a global organization system 24. INTRODUCTION
AlanRugmaninhisbookInTheEndof
Globalization:WhyGlobalStrategyisaMyth&
HowtoProfitfromtheRealitiesofRegional
Markets.SaysThinkregional,actlocal;forget
global.where-inheemphasizesthatwehave reached the phase of
globalization death and argues that globalization never existed at
all as envisioned 6.Today,tobesuccessfulmultinational
organizations;theGLOCALelementis
indisputablyimportantforallthemanagers,
leaders,entrepreneurswithrespecttovarious
flavorsanddimensionsofthebusinessoperations.
TheconceptofGLOCALstrategyfocusesona
coreglobalstandardstrategywhichhaslocal
elementsandinturnsignifieslocalizationofthe
globalstrategy.ThemajorGLOCALmix
strategiccomponentsincludeorganizationmission
&goal,organizationalresourcesandLocus
(GeographyandControl).Thesynergyofthe3
constituentsfacilitateslocalization,adaptationand
customizationoftheworldwideresources,goals and location of the firm
16.Thefocusofthepaperwouldbestudyingoneof
theGlobalelementswhichisthemarketing
strategyofselectglobalcompaniesentryinIndia and Indian MNCs which
have entered into foreign marketstoprovideaglocalperspective.In
particular,thecriticalfactorswhichwillbe examined for each select
company would be Brand Building,Understandingtheuniquenessofthe
consumer,STP(Segmentation,Targeting&
Positioning),LocalizationandInnovationofthe
product/service&CulturalDiversity.Think differently aboutyour
Indiastrategy is themantra whichshallbeexaminedineachoftheglobal
companiesforayintotheIndianmarketandvice versa 16. METHODOLOGY
Thisresearchpaperwouldfollowacasestudy approach of select companies
which would be from theGlobalFortune500Companiesforyear2011 and
other successful Indian multinationals from the
variedindustrieslikeApparel(Nike),Beverages
(CocaCola),FoodServices(McDonalds),General
Merchandisers(Wal-Mart),FoodConsumer
Products(PepsiCo),Household&Personal
products(P&G),LGElectronics,HyundaiMotors,
Kelloggs,Toyota,PizzaHutetc.IndianMNCs would include Dabur, TATA
& Marico.Thesamplesizewouldbeapproximately3Indian
companiesand8multinationals(global).Data
collectionwouldbespecificallysecondarydata
fromvariousconferencepapers,e-databases,
articles,journalspertainingtoinformationonthe
GlocalelementMarketingstrategyoftheselect
multinationalcompaniesviz-a-viztheirabilityto get connected
culturally into the local communities through the global
network.Journal of Business Management & Social Sciences
Research (JBM&SSR) ISSN No: 2319-5614Volume 2, No.1, January
2013
_________________________________________________________________________________
www.borjournals.com Blue Ocean Research Journals31 In anutshell,the
firststudywould beaqualitative study,toanalyzethemarketingelementof
Glocalizationwithfocusonthevariouswaysthe
globalmultinationalshaveforayedintoIndiaand vice-versa by analyzing
the local customers and the local
markets.Thesecondstudywouldfocusontheculturalfit
strategyadoptedbythemultinationalstomeetand
suittheneedsofthelocalconsumers. Understanding how global / Indian
brands adapt to thevariedrequirementsoftheconsumerbaseisa challenge
that lies ahead of every marketer. CONCLUSIONS AND IMPLICATIONS
Thescope of theresearch paperwas to discuss the
conceptonglocalcommunicationstrategyadopted
byvariousglobalandIndiancompanieswhile
enteringtheforeignmarket.Thisanalysisand
discussionshasbeenadministeredbyselecting certain successful
companies from the Fortune 500, 2011 listing and other successful
Indian companies which have made a mark in India. This concept and
discussioncanbeextendedthroughprimarydata
collectionmethodstofurtherstrengthenthetopic intovarious dimensions
ofglobal, local and glocal strategic implementation.
KEYWORDS:Glocal,Global,localization, globalization DATA COLLECTION
ENTRYOFINDIANCOMPANIESIN FOREIGN MARKETS Consumer
PackagedGoods(DaburIndia Ltd.):
India(1884),PersianGulfregionoftheMiddle East (1987): Dabur India
Ltd. is among the top CPG companies
cateringtopackagedhouseholdgroceriesand supplies consumed readily
and regularly, including foods,personalcareproductsanddetergents.
Daburidentifiedopportunitiesintheoverseas market and formed
asubsidiarynamed DIL(Dabur
InternationalLtd.)andin1987starteditsoverseas expansion of
exporting hair oil to the Gulf markets
andin2003becameaninternationallyrespected
andsuccessfulcorporationbyoccupyingherbal,
naturalandayurvedicplatformsthrough
globalization.Intheseforeignmarkets,identifying consumer needs,
developing localized products and
creatingnichetodriveatlongtermgrowthwere Daburs domestic
competences and capabilities and these competencies helped Dabur
build on skills in productengineeringandlocalizationinthe
overseasmarketsaswell.Forinstance:Many
playersusedcoconutinhairoilwhileDaburused amla which has its roots
in traditional medicine. By 2006 the company had set up 5
manufacturing units overseas with its products exported to more
than 50 countrieswhichwereservicedlocallybythe companys offices and
representatives 23. ThetemplateforDabursinternationaloperations
focusesontheaspectoflocalizingwherebythe technology of the new
geography should be in sync
withDaburstechnologyforadaptingtosuitlocal
needs.Localmanufacturingunitswerealsosetup
fortheportfoliosoftheAsianmarkets(Pakistan,
Nepal,Bangladesh,SriLanka,Malaysia).Thus
understandingthelocalDiasporawastheprime
concernforthecompanyatlarge.InNigeria (customers beyond the Indian
Diaspora), under the productportfolioofskincare,Daburlaunchedan
herbalsoapwithlocalizedingredientsasNigerian
marketpreferredoralcareandhomecareoverhair oil segment where Dabur
was prominent 23. TATAGROUP:Engineering(TataMotors,
Daewoo-2004,Jaguarandlandrover-2008),
Materials(Tatasteel,Corus:UK,2007),
IT(TCS),ConsumerProducts(TataTea,UK-2000),Energy(TataPower,Indonesia-2007),
Chemical(TataChemicals:Indomaroc,
Morocco-2005),Services(TajHotels,Starwood group: Australia, 2005)
RatanTata,thepresentChairmanoftheTata Group got Tata into the
competitive landscape into theglobalarena.Thetatagroupfolloweda
cajolingapproachtotop-downleadershipbeing
Tatascorporatestructureandmadeevery
companyglobalthinkingaspartoftheirbusiness
plans.Thegroupmadesurethataworkableplace on the ground is present
in the geographies it would exploreTheUSA,UK,China,Bangladeshand
SouthAfrica.Tataphilosophywastothinkglobal
locallytobeacontributingpartofthosecountries
intowhichitexpandswherethemotivewastobe
seenasalocalcompanythananIndian
company.Thuslocalmanagementandworkingto augment and support them
was the focus point. The localstrategyadoptedoperatingwiththelocal
governmentorculturallybyinvolvinginthe various activities like the
Indian food festival of the
musicprogram.TataTeasglobalacquisitionwith Tetley group of UK
marked the beginning of Tatas
acquisitionhistory.TataGroupspartnership
strategywastoseethetwoentitiesofacquisitions
(newentity)asoneentitythinkingofaglobal mind set 22.
ConsumerPackagedGoods(MARICO):India (1988), Bangladesh (late
1990s): Marico,althoughahouseholdnameinIndia,was
unknowninternationallyuntilexpansioninto
similarmarketswhichmadeitinternational players. Parachute is
Maricos flagship brand of the
coconutbasedhairoilcategorywhichwasunable
toexportuntilearly1990sbecausethe Journal of Business Management
& Social Sciences Research (JBM&SSR) ISSN No:
2319-5614Volume 2, No.1, January 2013
_________________________________________________________________________________
www.borjournals.com Blue Ocean Research Journals32
governmentsawvegetableoilswhichisan
essentialcommodityalwaysinshortsupply. Marico set up local
manufacturing plant in markets
whoseconsumptionpatternwasverysimilarto
IndianmarketswhichwouldbewithintheSouth-Asianmarkets.However,topenetratebeyond
SouthAsia,Maricorealizedthatitneededto innovate and move from
Indian-centric approach to the one that serves the needs of the
local markets 21.Marico learned that Arab consumers did not prefer
thesmellofcoconutoil;theypreferredless
stickinessandwouldusetheproductinan
environmentwithhighwaterchlorinationwhich
damagedhair.Toaddressthisconcern,Marico
launchedareformulationoftheproductthat counteracted the harmful
effects of chlorine 21. ENTRYOFFOREIGNCOMPANIESIN INDIAN MARKET
Beverages(CocaCola):USA(1886),India
(1993):Number1inBeverages,70thrank (Fortune 500, 2011)
Coca-ColaenteredintoIndiain1993aftera16
yearabsencesince1977andcontinuedtostruggle and crack the Indian
market in terms of profit until 2006
16.Itrecognizedthataonestopsolutionora
singleglobalstrategywontservethepurposeand
hencelocalexecutionsweretheelementsthought
offbyCoke.Itsbrandlocalizationstrategywas with reference to the two
Indias.IndiaA:LifehotoaisiThissegment
representedmetropolitanandlargertownswhich
accountfor4%ofthecountryspopulation.This
audiencegaveprioritytotheirsocialbondingand aspirations and hence
Coca-Colas tag line Life ho to aisi suited their needs and
aspirations. IndiaB:ThandaMatlabCoca-Cola-includes
smalltownsandruralsegmentwhichaccountfor
96%ofIndiaspopulationwhichneededout-of-thirstquenchingabilitytobefulfilled.Local
languageandidiomsappropriatelyusedbyCoca-Colainitsadvertisingcampaignsaddedtheflavor
to the marketing plan. Thanda means cool which
alsosignifiescoldbeveragesandontranslation
Cokemeansrefreshmentsuitedtheneedsofthe target
segment.Localemploymentandcorporatesocial
responsibilitywithfocusoncommunityand
environmentrelatedwasanothermannerin which Coca-Cola managed its
foray into the Indian market and made India accept this global
giant 11. FoodServices(McDonalds):USA(1940),India
(1996):Number1inthefoodservices,111th rank (Fortune 500, 2011) The
wide range of economic reforms in 1990s and
IndiangovernmentliberalizingpoliciesinIndia
andthehugeconsumermarket(300million consumers) facilitated
McDonalds to venture into India.ThefirstIndianoutletbyMcDonaldswas
openedinOctober1996inVasantViharwhichis
anaffluentresidentialcolonyinNewDelhi
focusingonthetargetsegmentofyoungpeople,
childrenandyoungparents.AndasofNovember
2004thetotaloutletshavebeen58mostlyinthe eastern and the northern
part of India with plans of openingmorethan90inthecomingthreeyears
span.Thelessontobeimbibedbyotherfood
servicecompaniesfromMcDonaldsisthathow could theysuccessfully sold
their hamburger chain in the cultural zone of India which is
dominated by non-beef,nopork,fullyvegetarianandregional food tastes
and moreover in a market where cow is sacred. Thus theidea of
replacing itscoreproduct whichisbeefbasedBigMacintomuttonbased
MaharajaMacinIndiawasconceptualizedwhich
againcausedaseriousconcernintermsof marketing a burgerwhich
ismadeother than beef. But the mutton burger did show tremendous
hit and thecompanynowmarketsotherproductstoits
growingHinduclientele.Thusbuildingbrandsin India was not an easy go
for McDonalds 16. SuccessMantrasinIndiawithspecificfocuson cultural
sensitivity:EmphasisonLocalManagementsetupjoint
ventureswithtwolocalentrepreneursinMumbai and Delhi on 50:50 basis.
PoliticallycorrectstrategyRightfrom
beginningbeefandporkwasacompleteno-no
consideringIndianpopulationtobe80%Hindus
whoconsidercowassacredand150millionof Muslim population who do not
eat pork. EmploymentOpportunityEveryexpansionof McDonalds in India
is well accepted by the Indian government. Green Sensitivity
McDonalds have constituted
aspecialfundtosupportgreeninitiativeswhichis addressed by India
prominently. Corporatecitizenshipsocialresponsibilityand
givingbacktoSocietyhasbeenpromisingly
undertakenbyMcDonaldsthroughvarious charitable and community
programs. Inanutshell,thepremierAmericanfastfood
cultureasindicatedbyMcDonaldsfitswellwith the Indian socio-cultural
landscape 3. GeneralMerchandisers(Wal-Mart):Arkansas
(1962),India(2007):Number1ingeneral merchandisers, 1st rank
(Fortune 500, 2011) Wal-MartspositioningstrategyAlwayslow prices
targets middle-class and lower-middle class
customers(300millionapprox.).Localizationof
theproductmixbeingoneoftheprimecorporate values Wal-Mart holds,
discount retailing has been amulti-local business agenda of the
company with alocalpartner-BhartiEnterprises,local
government,localpurchasingpower,local Journal of Business
Management & Social Sciences Research (JBM&SSR) ISSN No:
2319-5614Volume 2, No.1, January 2013
_________________________________________________________________________________
www.borjournals.com Blue Ocean Research Journals33
economiesofscaleandlocallogistics.Thislocal
gamelogicwasthedrivingforceforWal-Marts success 1. Wal-Mart opened
its first store in 2007 in Indiaandasperthecompany;theirpolicyhas
always beenAt Wal-Mart,we goto great lengths
toensureourinternationalstoresreflectthelocal
needsandwantsofourcustomers 14.Hencelocal
retailingalwaysrequiresamulti-localbusiness
environmentwhichWal-Marthasencashedonin India after getting a
success hit into Mexico market and by committing mistakes into its
non-US market foray like Brazil, Hong Kong, Korea etc 1.
FoodConsumerproduct(Kellogg):Michigan
(1906),India(1994):Number5inFood
consumerproduct,199thrank(Fortune500, 2011)
KelloggCompanyventuredintoIndiain
September1994withcornflakes,wheatflakesand
Basmatiriceflakesasitsinitialoffering.Its
productsfailedintheIndianmarketdespite
continuoussupportintermsofmanagerial,
financialandtechnical.Thisconceptofeating
cornflakesasabreakfastcerealwasan
unimaginativepropositionfortheIndianmarket
thatwouldprefersomehotvegetablesastheir
breakfastmenu.Indianshavethehabitofhaving
hotorlukewarmmilkwhichmakestheflakes soggy as opposed to the West.
Indian women were used to the breakfast palate of being hot, fresh
and savory.ThismadeKelloggschangetheirstrategy
andbegantoinnovatewiththenewproduct development of wheat and rice
cereals with flavors appealingtotheIndianlocalculturalhabits.The
launchofChocoswheatscoopscoatedwith
chocolateandFrostieswithsugarfrostingmade
Kelloggrealizetheimportanceofindianizingits products 8. Thus
studying the local tastes closely is
theonlymantrawhilegoingglobalwhich
Kelloggsmissedstudyingspecificallythe
anthropologyandtheculturalexpectations 2.Now
withthebreakfastroutinechangewiththe
inventionofnewproducts,cornflakesappetitetoo startedgrowing
16.FurthermoreKelloggsrealized that the American culturewould never
be accepted byIndiansandhencetheystartedadapting, modifying and
sculpting its business proposition in India 4.
MotorVehicles(Toyota):Japan(1945),India (1997)
JapaneseautogiantToyotaforayintoIndiawas worth appreciably. It
clearlyunderstood themeans toentertheIndianmarketwhichwasfocusonthe
middleandupperclasssegmentastheeconomy and small car segments were
already crowded with lessopportunitytodobusiness.Alsowiththe
economyboomingandtheriseofpurchasing
power,consumerswerewillingtoupgradetheir models and hence wouldnt
mind paying extra for a betterandpremiumproduct.Withthis
organizationalmissionandgoal,Toyotalaunched
CamryandCorollawhicharethemiddleand
highercarsegmentswhichhavebeenagreat
successforthecompany.Thusaffordabilitywas
thedrivingsuccessfactorforToyotawhichwas understoodwell pertaining
to theIndian customers 16.Toyotafocusedonminivanswhichhadvery
littlecompetitionandtargetedlargeandbigger
families.ThismovefacilitatedToyotatohavethe control over the top
share of automobiles 13. MusicTVNetwork(MTV):USA(1981),India (1996)
Indiaisagreatvenuetoconductbusinessin
Televisionbecauseofthecountrysvastmiddle
classsegmentinthetantalizingmarket.MTVs
passageintoIndiaisalessonwelllearnt
consideringthepopulationof1billionwith
majorityinthepoorsegmentandthemiddleclass
growingexponentially.Withtheeconomical
growth,advertisingalsogrowsrapidlyasaresult the first time
purchasing and consumption of credit
cards,TVsets,mobilephones,CDplayers,and
automobilesarealsoonrise.Indiaenjoysand celebrates its democracy in
the television and print mediawith its flamboyantfilm
andmusicindustry unlikeChinawhere-inthecentral-government
tightlycontrolstelevisionandprint.Hencein search of growth, we have
the global entertainment giantswhoarematuringintheUSventuringinto
IndiaandAsia.ThestreetsofMumbaibeingthe
nationsentertainmentcapitalandIndiahavinga
verychaotic,noisyandovercrowdedmedia
landscape,itwasverydifficultformediato
navigatefreely.MTVIndiawaswellknownfor two main reasons:Its
existence in doing business since 1991, much before any of its
competitors arrived.MTVbeingthebestglobalTVnetwork
(buildingoriginalchannels)havingperformed better than CNN, [V] or
any other channel in terms ofspreadingitsbrandandconductinglocal
programs with local staff in every nook and corner of the world.
MTVnetworks72internationalchannelscovering
321millionhomesspreadacrossEurope,Asia,
LatinAmerica,AustraliaandCanadagenerating
annualrevenueofapprox.$1billionfromoutside
theUS.ThusMTVCompanyhastaughtother players to do business by
understanding theIndian culture.MTVatnostagebombardedtheIndian
teenagerswithAmericanprogramming(preferring rap and rock music)
rather tailored its operations to
fitthemasses.IndiascableTVindustrywas
anotherpuzzleforMTVwhichhastoomany
channelsfetchingfewadvertisingdollarsandin turn competes with
channels like news, sports, soap Journal of Business Management
& Social Sciences Research (JBM&SSR) ISSN No:
2319-5614Volume 2, No.1, January 2013
_________________________________________________________________________________
www.borjournals.com Blue Ocean Research Journals34
opera/entertainmentchannels.Doingbusiness
differentlybynotjustlookingatthepopulation
(sizeofthemarket)numbersofmakinghuge
moneybutreflectingonthelocalcultureiswhat most multinationals fail
today. MTV Bhakra, MTV roadies,MTVWebWatch,MTVKitneMastHai
Zindagibeingsomeinnovativeprogramslaunched by MTV in a different
paradigm.Culturalfit:MTVisprogrammeddifferentlyin
differentcountries.Chinareflectsuponfamily
values,nurturingandalotofromanticsongs; Indonesia consisting of
Islamicpopulation calls on conductingprayer5timesadayontheMTV
channel;Brazilfollowswithasexyfeel;Italy
depictsstyle,eleganceandfoodshows;Japan being tech savvy; and MTV
India focuses on color, self-efficacy, full of humor and huge
street culture. Thefactremainsthatoftheentireemployee
strengthworkingforMTVInternational,only
around10%wouldbeAmericans.MTVbeinga
nationalmusicchannelnowalsocompeteswith
regionalmusicchannelsshowingmusicinTamil, Telegu and Punjabi 5.
Electronics&Telecommunications(LG Electronics): Korea (1958),
India (1993):Extensive market research, product localization and
aggressiveandlargescaleadvertisingcampaigns
hasbeenthekeydriversforKoreasLG Electronics in India to be
successful even during its earlyphaseonenteringintotheIndianmarket.
Specificallyspeakingoftheaggressiveadvertising
campaigns,thecostwasbornebyitsheadquarters
inSeoulandnotbyincreasingthepriceofthe product which gave LG huge
dividends. Great deal ofsupportfromitscorporateofficetoitslocal
subsidiaryinIndiawastheadvantageLGhadto
runitsoperationsintotheIndianmarket.Another
strategythatworkedwellforLGwasthatits
KoreanfirmprovidedhugecomfortforKorean
expatriateemployees/ManagerslivinginIndia.
KoreanVillageswerecreatedandKorean
speakingcook/maidwasarrangedfromKorea
whichhelpedthemtoadaptmoreflexiblyintothe Indianmarketthereby
increasing their productivity and motivation
13.ThisclearlyindicatesthatInvestinginones
brandisveryimportantwhicheveryHead
Quartersshouldunderstandbeforeforayinginto
anyothermarketwhichKoreasLGElectronics
hasfullyacknowledgedandpracticed 16.LG
focusesoncustomizingitsproductsbasedonthe
customerlifestyle.Fore.g.SinceinmanyIndian
families,washingmachineisoperatedbyhouse
maidswhoareeitherilliterateorcantreadin
English,LG'salternatestrategywastoincorporate
speechtechnologythatallowstheinstructionsin
thevariouslocallanguages.Suchinnovationsthat
fiteverycustomerslifestylehelpedLGIndiato connect to its customers
9. DISCUSSIONS AND IMPLICATIONS: INDIAN COMPANIES ENTRY IN FOREIGN
MARKETS TABLE 1: MNC NAMEDabur ORIGININDIA (1884)INDUSTRYCPG
(Consumer Packaged Goods) RANKINGDabur ranked 200 in the Fortune
India 500 list that ranks India's 500 largest corporations 2010-11
(Dabur, 2013). TARGET AUDIENCEPriced for and targeted at the mass
market (Arab consumer Arab female, Asian consumer Asian male,
African consumer African male & female) GLOBAL STRATEGYAdopting
local Diaspora, using local ingredients LOCAL STRATEGY (Entered UAE
1987) The template for Daburs international operations focuses on
the aspect of localizing whereby the technology of the new
geography should be in sync with Daburs technology for adapting to
suit local needs. Local manufacturing units were also set up for
the portfolios of the Asian markets (Pakistan, Nepal, Bangladesh,
Sri Lanka, Malaysia). In Nigeria (customers beyond the Indian
Diaspora), under the product portfolio of skin care, Dabur launched
an herbal soap with localized ingredients.GLOCAL STRATEGY (CULTURAL
FIT) Challenge rested on Dabur when it entered the Nigerian market
(African market which was beyond the Indian Diaspora). Dabur had
traditional strengths in personal care (hair oil) and not oral care
and home care which the African market was dominant in. Hair care
products sold in Nigeria are cosmetics and the consumers are used
to Edited by Foxit ReaderCopyright(C) by Foxit Software
Company,2005-2008For Evaluation Only.Journal of Business Management
& Social Sciences Research (JBM&SSR) ISSN No:
2319-5614Volume 2, No.1, January 2013
_________________________________________________________________________________
www.borjournals.com Blue Ocean Research Journals35 using electric
coils not creams which is Daburs forte. Dabur Herbal Toothpaste and
Dabur Herbal Fresh Gel was manufactured for the African consumer
care market (Dabur, analysis). TABLE 2: MNC NAMETata Group
ORIGININDIA (1868) INDUSTRYEngineering (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 (Taj Hotels, Starwood group: Australia,
2005) RANKINGTata Motors ranked 359 and Tata steel ranked 370 ,
Fortune 500 list 2011 TARGET AUDIENCEDriving for Multi-industry
global leadership GLOBAL STRATEGYTo be seen as a local company than
an Indian company.LOCAL STRATEGY Tata philosophy was to think
global locally to be a contributing part of those countries into
which it expands to experience the pain and ecstasies of the
community. Thus local management and working to augment and support
them was the focus point.GLOCAL STRATEGY (CULTURAL FIT) The local
strategy adopted operating with the local government or culturally
by involving in the various activities like the Indian food
festival of the music program. TABLE 3: MNC NAMEMarico ORIGININDIA
(1988) INDUSTRYCPG (Consumer Packaged Goods) RANKING- TARGET
AUDIENCETargeted at the mass market having the household name in
India GLOBAL STRATEGYExpansion into similar markets but realized
that it had to move from India-centric approach to serving local
needs of the local markets to penetrate further. LOCAL STRATEGY
(Entered Bangladesh late 1990s(Marico) Set up local manufacturing
plant in markets whose consumption pattern was very similar to
Indian markets which would be within the South-Asian markets;
However, to penetrate beyond South Asia, Marico realized that it
needed to innovate and move from Indian-centric approach to the one
that serves the needs of the local markets. GLOCAL STRATEGY
(CULTURAL FIT) Marico learned that Arab consumers did not prefer
the smell of coconut oil; they preferred less stickiness and would
use the product in an environment with high water chlorination
which damaged hair. To address this concern, Marico launched a
reformulation of the product that counteracted the harmful effects
of chlorine. ENTRY OF FOREIGN COMPANIES IN INDIAN MARKET TABLE 4:
MNC NAMECoca-Cola ORIGINU.S.A (1886) INDUSTRYBeverages
RANKINGNumber 1 in Beverages, 70th overall (Source: Fortune 500,
2011) TARGET AUDIENCEMost Coke products satisfy the requirements of
all age groups ranging Edited by Foxit ReaderCopyright(C) by Foxit
Software Company,2005-2008For Evaluation Only.Journal of Business
Management & Social Sciences Research (JBM&SSR) ISSN No:
2319-5614Volume 2, No.1, January 2013
_________________________________________________________________________________
www.borjournals.com Blue Ocean Research Journals36 from health
conscious to average human being. GLOBAL STRATEGYCoca-Cola adopts
Individual branding strategy as its different products are given
own names like Fanta, Sprite, Coca-Cola etc. Television, radio and
magazines are the most common promotion mix adopted by Coa-cola.
LOCAL STRATEGY (Entered India - 1993 after a 16 year absence since
1977) Its brand localization strategy was with reference to the two
Indias. India A: Life ho to aisi, India B:Thanda Matlab Coca-Cola.
Local employment and corporate social responsibility with focus on
community and environment related. GLOCAL STRATEGY (CULTURAL FIT)
It recognized that a one stop solution or a single global strategy
wont serve the purpose and hence local executions were the elements
thought off by Coke. Global Brand Coke promoted using punch lines
suiting Indian culture. TABLE 5: MNC NAMEMcDonalds ORIGINU.S.A
(1940) INDUSTRYFood Services RANKINGNumber 1 in the food services,
111th rank overall (Source: Fortune 500, 2011) TARGET AUDIENCEYoung
people, children and young parents. GLOBAL STRATEGYcore product
beef based Big Mac LOCAL STRATEGY (Entered India Oct, 1996)
Replacing its core product which is beef based Big Mac into mutton
based Maharaja Mac in India. Successfully sold their hamburger
chain in the cultural zone of India which is dominated by non-beef,
no pork, fully vegetarian and regional food tastes and moreover in
a market where cow is sacred. The mutton burger did show tremendous
hit and the company now markets other products to its growing Hindu
clientele. GLOCAL STRATEGY (CULTURAL FIT) Emphasis on Local
Management Politically correct strategy - beef and pork was a
complete no-no Employment Opportunity Green Sensitivity Corporate
citizenship social responsibility TABLE 6: MNC NAMEWal-Mart
ORIGINRogers (Arkansas - 1962) 19 INDUSTRYGeneral Merchandisers
RANKINGNumber 1 in General Merchandisers, 1st rank overall (Source:
Fortune 500, 2011) TARGET AUDIENCEWal-Marts positioning strategy
Always low prices targets middle-class and lower-middle class
customers (300 million approx.). GLOBAL STRATEGYGlobal presence in
Mexico, Brazil, Argentina, Hong Kong, Indonesia, Korea, China,
India and in every country Wal-Mart says Discount retailing is a
very multi-local business where local market share is critical.
LOCAL STRATEGY (Entered India August, 2007) Localization of the
product mix being one of the prime corporate values Wal-Mart holds,
discount retailing has been a multi-local business agenda of the
company with a local partner - Bharti Enterprises, local
government, local purchasing power, local economies of scale and
local logistics. GLOCAL STRATEGY (CULTURAL FIT) As per the company;
their policy has always been At Wal-Mart, we go to great lengths to
ensure our international stores reflect the local needs and wants
of our customers TABLE 7: Edited by Foxit ReaderCopyright(C) by
Foxit Software Company,2005-2008For Evaluation Only.Journal of
Business Management & Social Sciences Research (JBM&SSR)
ISSN No: 2319-5614Volume 2, No.1, January 2013
_________________________________________________________________________________
www.borjournals.com Blue Ocean Research Journals37 MNC NAMEKellogg
ORIGINMichigan (1906) 12 INDUSTRYFood Consumer Product
RANKINGNumber 5 in Food Consumer Product, 199th rank overall
(Source: Fortune 500, 2011) TARGET AUDIENCE (India)Breakfast Cereal
(Cornflakes) for the Indian market promoted by targeting Indian
Women GLOBAL STRATEGYConcept of Cold Reception Consuming breakfast
cereal with something cold : i.e. pouring cold milk on your
breakfast cereal like cornflakes which was a success in America,
Britain, Japan, Korean and China but a disaster in India. LOCAL
STRATEGY (Entered India September, 1994) Indians have the habit of
having hot or lukewarm milk which makes the flakes soggy as opposed
to the West. Indian women were used to the breakfast palate of
being hot, fresh and savory.GLOCAL STRATEGY (CULTURAL FIT) They
began to innovate with the new product development of wheat and
rice cereals like Chocos & Frosties with flavors appealing to
the Indian local cultural habits. TABLE 8: Other Global Companies
Success story in India: MNC NAMEToyota ORIGINJapan (1945) 17
INDUSTRYMoto Vehicles - Automobile RANKINGNot in the listing of
Fortune 500, 2011TARGET AUDIENCE (India)Middle and Upper class
segment GLOBAL STRATEGYToyota philosophy in global markets localize
/ adapt the design and production facilities of its products to
build long-term relations with the suppliers and labor of the local
market. LOCAL STRATEGY (Entered India 1997, Toyota Kirloskar Motor
Pvt. Ltd.) 18 Affordability of the Indian consumers : It clearly
understood the means to enter the Indian market which was focus on
the middle and upper class segment as the economy and small car
segments were already crowded with less opportunity to do business.
GLOCAL STRATEGY (CULTURAL FIT) Toyota launched Camry and Corolla
which are the middle and higher car segments which have been a
great success for the company. Toyota focused on minivans which had
very little competition and targeted large and bigger families.
TABLE 9: Other Global Companies Success story in India: MNC NAMEMTV
(Music Television) ORIGINU.S.A (1981) INDUSTRYMusic TV Network
RANKINGNot in the listing of Fortune 500, 2011TARGET AUDIENCE
(India)Middle class segment, youth culture GLOBAL STRATEGYMusical
genres mostly pop music, soft rock, Latin pop, and hip hop music
was the programming culture targeted towards youth at the global
scenario especially in Latin America. Each of the music genres
included music in English and Spanish language. LOCAL STRATEGY
(Entered India 1996, and is now part of the Viacom 18 Media Pvt.
Ltd based in Mumbai.) MTV at no stage bombarded the Indian
teenagers with American programming (preferring rap and rock music)
rather tailored its operations to fit the masses. MTV Bhakra, MTV
roadies, MTV Web Watch, MTV Kitne Mast Hai Zindagi being some
innovative programs launched by MTV. GLOCAL STRATEGY (CULTURAL FIT)
MTV is programmed differently in different countries. MTV India
focuses on color, self-efficacy, full of humor and huge street
culture. MTV being a national music channel now also competes
Edited by Foxit ReaderCopyright(C) by Foxit Software
Company,2005-2008For Evaluation Only.Journal of Business Management
& Social Sciences Research (JBM&SSR) ISSN No:
2319-5614Volume 2, No.1, January 2013
_________________________________________________________________________________
www.borjournals.com Blue Ocean Research Journals38 with regional
music channels showing music in Tamil, Telegu and Punjabi. TABLE
10: Other Global Companies Success story in India: MNC NAMELG
Electronics ORIGINKorea (1958) INDUSTRYElectronics &
Telecommunications RANKINGNot in the listing of Fortune 500,
2011TARGET AUDIENCE (India)Cater to the needs and requirements of
the diverse customers, primarily focus on semi-urban towns and
rural markets. GLOBAL STRATEGYExtensive market research, product
localization and aggressive and large scale advertising campaigns
has been the key drivers for Koreas LG Electronics.LOCAL STRATEGY
(Entered India 1993) 10 "One reason LG is successful in India is
that we listen carefully to our customers. We have realized that
not just localization, but micro-localization, is required."
According to an official of LG Electronics 9.GLOCAL STRATEGY
(CULTURAL FIT) LG focuses on customizing its products based on the
customer lifestyle. E.g. Since in many Indian families, washing
machine is operated by house maids who are either illiterate or
cant read English; LG's alternate strategy was to incorporate
speech technology that allows the instructions in the various local
languages. Innovations that fit every customers lifestyle helped LG
to connect to its customers 9. CONCLUSIONS AND IMPLICATIONS
Thescope of theresearch paperwas to discuss the
conceptonglocalcommunicationstrategyadopted
byvariousIndianandGlobalCompanieswhile
enteringtheforeignmarket.Thisanalysisand
discussionshasbeenadministeredbyselecting
certainsuccessfulforeignCompaniesfromthe
Fortune500,2011listingandothersuccessful
IndianCompanieswhichhavemadeamarkin
Indiaandforeignmarket.Thisconceptand
discussioncanbeextendedthroughprimarydata
collectionmethodstofurtherstrengthenthetopic intovarious dimensions
ofglobal, local and glocal strategic implementation. LITERATURE
CITED [1] Bansal, N. (2009). Walmarts Strategy through the World.
Retrieved October 1, 2012 from Business magazine Web site:[2]
http://business.in.com/article/magazine-extra/walmarts-strategy-through-the-world/6042/1
[3] Bhan, N., Nemer, B. (2006). Brand Magic in India. Retrieved
from Bloomberg business week Web site:
http://www.businessweek.com/innovate/content/may2006/id20060508_952455.htm
[4] CNN Money. (2011). Fortune 500. A service of CNN, Fortune &
Money. Retrieved October 2, 2012 from Web site:
http://money.cnn.com/magazines/fortune/fortune500/2011/industries/
[5] Dash, K. (2005). McDonalds In India.Thunderbird - the Garvin
School of International Management. Retrieved October 3, 2012 from
Web site: http://csumba.org/mba602/McDonald's%20in%20India.pdf
[6]Gordon, A., Deshmukh, A., Gupta, D., Hung, S., Baek, C.W.
(2005). McDonalds adapts to India, Student Projects, Thunderbird
School of Global Management,Retrieved October 1, 2012 from Web
site:
http://knowledgenetwork.thunderbird.edu/student-projects/2010/12/14/mcdonalds-adapts-to-india/
[7] Gunther, M. (2004). MTVs passage to India The countrys vast
middle class is a tantalizing market. Retrieved September 20, 2012
from CNN Money Web site: [8]
http://money.cnn.com/magazines/fortune/fortune_archive/2004/08/09/377904/index.htm
Edited by Foxit ReaderCopyright(C) by Foxit Software
Company,2005-2008For Evaluation Only.Journal of Business Management
& Social Sciences Research (JBM&SSR) ISSN No:
2319-5614Volume 2, No.1, January 2013
_________________________________________________________________________________
www.borjournals.com Blue Ocean Research Journals39 [9] Hall, J.
(2001). The End of Globalization: Why Global Strategy is a myth and
how to profit from the realities of regional markets. The Academy
of Management Executive, 140. Retrieved October 4, 2012 from JSTOR
database. [10]Hindu Business Line. (2007). Dabur set to regionalize
brands. Retrieved September 23, 2012 from Web site:
[11]http://www.thehindubusinessline.com/todays-paper/tp-marketing/article1648866.ece?ref=archive
[12] ICMR. (2001). Kelloggs Indian Experience. ICMR Case Studies
Collection. Retrieved October 6, 2012 from ICMR IBS Center for
Management Research Web site:
[13]http://www.icmrindia.org/casestudies/catalogue/Marketing/Kellogg's%20Indian%20Experience.htm
[14]India Knowledge Wharton. (2008). Korean Conquest: How LG and
Samsung won over the Indian market. Retrieved September 20, 2012
from Knowledge Wharton Web site:
[15]http://knowledge.wharton.upenn.edu/india/article.cfm?articleid=4338
[16] IUP. (2010). LG Electronics India: Life is Good. Retrieved
October 1, 2012 from IUP India Web site:
http://www.iupindia.in/505/AN_LifeisGood_14.html [17] Kaye, J.
(2004). Coca-Cola India, business case for Tuck School of Business
at Dartmouth. Retrieved October 3, 2012 from Web site:
http://mba.tuck.dartmouth.edu/pdf/2004-1-0085.pdf[18] Kelloggs.
(2011). Our History. Retrieved October 1, 2012 from Kellogs Web
site: [19]http://www.kelloggcompany.com/company.aspx?id=39 [20]
Kondo, B. (2008). Success of MNCs In India. Professor of
International Christian University. Retrieved from Nihongo Bashi
Pvt. Ltd. Web site:
http://www.nihongobashi.com/news/japanese-mncs-2.html [21]
Krishnan, R. (2008). Glocal Mission, Resources and Locus in
Organizational Strategy. Paper submitted for 11th Annual
Conventionof the Strategic Management Forum. Retrieved September 4,
2012 from Web site:
[22]http://www.iitk.ac.in/infocell/announce/convention/papers/Marketing,%20Finance%20and%20International%20Strategy-01-R%20Krishnan.pdf
[23] Management Paradise. (2011). Marketing Plan Coca Cola.
Retrieved October 1, 2012 from Web site:
[24]http://www.managementparadise.com/forums/marketing-management/4403-marketing-project-coca-cola-india-3.html
[25] Raghavan, L. (2007). Lessons from the Maharaja Mac: Five rules
for entering the Indian market. Landor Associates. Retrieved
October 5, 2012 from Web
site:[26]http://www.landor.com/index.cfm?do=thinking.article&storyid=559&bhcp=1
[27] Toyoland. (2011). Toyota History: corporate and automotive.
Retrieved November 16, 2011 from Web site:
http://www.toyoland.com/history.html [28] Toyota. (2011). Toyota
Legacy. Retrieved October 4, 2012 from Toyota Web site:
[29]http://www.toyotabharat.com/inen/about/toy_legacy.aspx
[30]Walmart. (2011). History Timeline. Retrieved September 23, 2012
from Walmart Corporate Web site:
http://walmartstores.com/AboutUs/7603.aspx [31] Wikipedia. (2011).
Glocalisation. Wikipedia The Free Encyclopedia.[32]Kumar, N.,
Mohapatra, P., Chandrasekhar, S. (2009). Seeking Global Consumer
Brands from India. Harvard Business Press. [33]Kumar, N.,
Mohapatra, P., Chandrasekhar, S. (2009). Tata Group Driving for
Multi-Industry Global Leadership. Harvard Business Press. [34]
Chandrasekhar, R. (2009). Dabur India Ltd. Globalization. Richard
Ivey School of Busines, The University of Western Ontario. [35]
Ramachandran, J.,et al. (2004). Indian Companies in Overseas
Markets: Perspectives, Patterns, and Implications. Retrieved
October 1, 2012 from Web
site:[36]http://www1.ximb.ac.in/users/fac/Amar/AmarNayak.nsf/dd5cab6801f1723585256474005327c8/060eac2cc3faa40265256c78003ff893/$FILE/Indian%20companies-colloquium.pdf
