Nestles Multidomestic Strategy Germany Switz France U S

Nestles Multidomestic Strategy Germany Switz. France U. S.

Nestle 1983 Structure

Marketing Activities F Strategy: Multidomestic vs. Global – How standardized or localized should the marketing program be? F HQ Influence – What is appropriate level of HQ intervention in decision making – degree of “centralization”? ?

Centralization and Standardization Centralized HQ Influence Decentralized The extent to which activities are the same across national units. The extent to which activities are differentiated across national units. Forces? Standardized Strategy Localized

Product Names F Coca-Cola in Chinese: “Bite the wax tadpole” F Castlemain XXXX lager in US: “Fourex (condoms)” F Olympia ROTO copiers in Chile: “broken” or “low-class”

Marketing F In India it’s the Taj Mahal (a mausoleum); in New York it’s the Helmsley Palace F United Airlines ad in Australia: Crocodile Dundee camps it up (…means Dundee flaunts his homosexuality) F Guinness is good for you. . . attracts pregnant women as key customers

Centralization and Standardization Centralized HQ Influence Decentralized The degree to which HQ has decision-making authority. Forces for centralization? ? The degree to which each country has decision-making authority. Forces for de-centralization? ? Standardized Strategy Localized

Levels of HQ Influence Directing Approving Coordinating Persuading Informing Ignoring

Nestles Marketing Integration Centralized HQ Influence Decentralized Branding Price Packaging Product Advert. ? Promo. Standardized Strategy Localized

Managerial Roles F Product Manager – Strategist, architect, coordinator F Country Manager – Sensor, builder, contributor F Functional Manager – Specialist, cross-pollinator

Nestles’ New Marketing Structure