Local versus global brands the Internationalization process in
“Local versus global brands: the Internationalization process in Food and Beverage Industry” AUTHORS: ZULFA SULTANA ZIM DR. MUSLIMA ZAHAN REPRESENTING NORTH SOUTH UNIVERSITY
Purpose of the paper � To explore reasons why locals prefer global products over local products � To find scopes and opportunities for the local marketers � Premium pricing and Quality relationship testing differences between local and global platform
Methodology �The paper has been constructed based on a practical strategy analysis of 10 diversified brands and 5 product categories �Vital attributes such as: v QUALITY v BRANDING EFFORTS v BRAND IMAGE Has been studied to understand the relation with Premium pricing
Primary Data: �First-hand information was gathered from 500 respondents through Snowballing and Random Smapling around: v Shopping malls v Colleges and Universities v Corporate Offices v Through distribution of survey questionnaires
Secondary data (survive & explore): �Finally, 50 published journal articles of international brands have been studied in order to understand the Industry life cycle stages and its survivality �Criteria that drives the consumer behavior other than Quality and Price was also identified
Globalization: we are all here united under 1 roof today
10 Diversified Brands:
Research Questions: � why consumers prefer global brands over local brands; � whether patriotism factor influences a local product purchase; � whether quality impovements can enable local companies to charge a higher price; � whether global products’ quality and its high price is positively related; and � which areas can local brands concentrate on in order to meet International standards.
Findings: �Quality & Premium Price is positively related for global products �As oppose to local products (negatively related) �General people suggest to raise quality however do not want to pay a premium price for that
Results: � The survey revealed that even if there are significant product improvements, there will be less acceptance of local products a over a global product � Certain factors play a crucial role beyond Quality: v Branding efforts v Product variations v Brand Image (Parent company)
Strategy to be considered: ‘Patriostism’: A significant market game changer �Significant number of people still purchase due to patriostic factors (survey results)
Emotions & Patriotism Established brands
Limitations: �Respondents could be higher. �Management or authority could be interrogated regarding the positioning of its products in the global platform. �Higher future scope.
Conclusion �The local products can improve its quality by setting up a benchmark of the global products. �Increase effective communication strategy. �Incorporate more product variations. Ultimately, may be able to meet international standards.
- Slides: 15