INTERNATIONAL

MARKETING
4 Credits
Semester IV
Batch of 2015-17
Modules
1

Introduction to
International
Marketing
5

Marketing
Challenges in the
Assessing Global Developing a 21st Century
Market Marketing Plan
Opportunities

3
2

Developing Global
Market Strategies

4
Modules
1

Introduction to
International
Marketing
5

Marketing
Challenges in the
Assessing Global Developing a 21st Century
Market Marketing Plan
Opportunities

3
2

Developing Global
Market Strategies

4
 Gillette Vector
Plus (Rs. 5 per
week) male
grooming
product has
also made
aggressive
inroads into the
price sensitive
Indian market
for cartridge
based razor
blades
Marketer focuses only on the domestic
market consumer segment/s: Example 1
Nirma – the mass marketing domestic
marketing champion created marketing
history by offering detergent powder at
low prices to Indian market consumers
Example 2: Dabur
Example 3: Patanjali
Example 4: Haldiram’s
Example 5: Vicco
Example 6: Britannia Industries
Example 7: Tata Motors
Nirma: largest ethnocentric consumer products company
 Nirma
• Nirma, the proverbial ‘Rags to Riches’ story of
Dr. Karsanbhai Patel
• A classic example of the success of Indian
entrepreneurship in the face of stiff competition
• Starting as a one-man operation in 1969
• Today NIRMA has 18,000+ employees
• Annual turnover is more than 7,000 Crores INR
• Britannia Good Day
Good Day man: Sunil Alagh, former Managing Director,
Britannia Industries
Hemant Rupani, Vice-President, Sales, Britannia Industries Ltd
Good Day as a Rs. 1,500-crore brand.

It is estimated to have daily sales of 3.8

million packs.
Amul
Export Marketing : Evolution of Global Marketing
(Stage II)
Marketing Focus : Entering foreign markets
: Domestic consumers

: Limited exports
Examples: MTR Foods

Tata Motors
Export Marketing: Stage II

Marketer focuses only on the domestic

market consumer segment/s

Also services export orders for products

from international importer firms and
retailers
P. Sadanand Maiyya, Chairman and MD, MTR Foods
Sanjay Sharma CEO, MTR Foods
 MTR Foods Pvt. Ltd., a
subsidiary of Norwegian
conglomerate, Orkla Foods

SANJAY SHARMA, CEO, MTR Foods and ATLE VIDAR,

Executive vice-president, Orkla Foods
 TATA ACE
• Tata ACE
 The Channel

• To reach and access smaller retailers in smaller

cities and towns and far distant consumption
centers in rural areas required redesigned trucks
with lower loads
• The exporting firm over time expands
into multiple domestic markets and
focuses on establishing market share
and emerges as a foreign competitor
International Marketing : Evolution of Global Marketing
(Stage III)
Marketing Focus: Marketing in foreign markets
by acquiring host country
marketing brands OR launching
new brands specific to market

The local subsidiary of the foreign

parent company develops local
products customized for

home country consumer

needs
 DEFINITION
International marketing is the
process of planning and executing
pricing, promotion and distribution
of ideas, goods, and services to
create exchanges that satisfy
consumers in foreign markets.
PEPSICO INC. Global HQ in Purchase, New York
PepsiCo offers unique country-specific
products to over 200 countries 
UK and Ireland
Australia
SPAIN
RUSSIA
Marketing mix decisions such as
product development, branding,
distribution, pricing and promotion by
marketing department of local
subsidiary of the firm
 Multinational Marketing : Evolution of Global
Marketing (Stage IV)
Marketing Focus : Consolidation of operations
on a regional market basis
(multinational marketing)

: Product standardization
on a regional basis
• Local subsidiary of the foreign parent company designs and markets
standardized products for regional market consumers only: South Asia,
Middle East, North America

• Examples: Unilever, Nestle, Reckitt Benkiser

Marketing mix decisions are
standardized within the region but
not across regions (advertising,
promotion and distribution)

Regional subsidiaries control

marketing mix: Unilever, Nestle, GM,
Reckitt Benkiser, Suzuki, Hyundai
 Global Marketing : Evolution of Global
Marketing (Stage V)

Marketing Focus: Consolidation a firm’s operations

on a global basis (global marketing)

: Globalization of marketing mix

decisions with local variations
(single marketing method)
• The marketers focus is single market:
that is the standardization of the
marketing program across a single
global market with respect to product
offering, pricing and channel
structures
• The champion of global marketing is
the iconic soft drink beverage brand:
Coca Cola
• Its worldwide success is a textbook
application of the geocentric
orientation of global marketing
• Coke embraces a geocentric orientation that while it
is a world’s strongest brand globally the company
produces over 3500 products and 200 beverages
brands to suit local beverage preferences
Heinz Tomato ketchup has been exclusively
endorsed by NASA to supply the
International Space Station.

Heinz sells 11 billion single-serve packets of

ketchup per year around the world. That's 2
packets for every person on earth.

Over 1000 bottles of Heinz Tomato Ketchup

are sold every minute.

Over 2 million tons of high quality tomatoes

are used by Heinz making it the largest user
of tomatoes in the world.
 P&G touches and
improves the lives
of about 4.4 billion
people around the
world with its
portfolio of trusted,
quality brands.
Modules
1

Introduction to
International
Marketing
5

Marketing
Challenges in the
Assessing Global Developing a 21st Century
Market Marketing Plan
Opportunities

3
2

Developing Global
Market Strategies

4
Ethnocentric Orientation of the Firm
Marketer’s orientation to marketing is
ethnocentric
1. Belief of the marketer that
marketing strategies successful in
domestic markets will meet with equal
success in international markets

Marketers ignore marketing mix

differences
Firms in the DOMESTIC MARKETING
and EXPORT MARKETING stages
=
ethnocentric orientation
Polycentric Orientation of the Firm
Marketer’s orientation is polycentric.
i.e. firm recognizes and responds to
adaptation of marketing strategies
for multidomestic target markets
(standardization vs customization)
PEPSICO INC. Global HQ in Purchase, New York
PepsiCo offers unique country-specific
products to over 200 countries 
Regiocentric Orientation of the Firm
Marketer’s orientation is regiocentric. i.e.,
product development is standardized within
a region (for similar country markets) such
as South Asia but not across regions
Geocentric Orientation of the Firm
•The marketer’s orientation is
geocentric: strategic approach to have
a global perspective to reap
economies of scale and not complete
standardization of the marketing mix
decisions
• Coca Cola, Toyota, Colgate-Palmolive,
P&G
 P&G touches and
improves the lives
of about 4.4 billion
people around the
world with its
portfolio of trusted,
quality brands.
Modules
1

Introduction to
International
Marketing
5

Marketing
Challenges in the
Assessing Global Developing a 21st Century
Market Marketing Plan
Opportunities

3
2

Developing Global
Market Strategies

4
 Module II

Assessing Global Marketing Opportunities

Modules
1

Introduction to
International
Marketing
5

Marketing
Challenges in the
Assessing Global Developing a 21st Century
Market Marketing Plan
Opportunities

3
2

Developing Global
Market Strategies

4
Marketing Research

Marketers often need to conduct formal

study on a specific subject using primary
data collected from respondents

Definition Marketing research is the

systematic design, collection, analysis
and reporting of data relevant to a
specific marketing situation facing an
organization
 Scope of Marketing Research
• The EASIEST WAY to understanding
Marketing/MR!
• Focus on the three Cs of Marketing
1. Consumer

2. Communication

3. Channel
 The CONSUMER
• The Consumer
 The COMMUNICATION
• The Communication
 The CHANNEL
• The CHANNEL
Marketing Research
In other words a really simple definition
of Marketing Research focuses on a
specific marketing issues about a
consumer, a communication, a channel

Types of marketing research

Types of Marketing Research
Quantitative research: random sampling of respondents
to collect data on: descriptive statistics (numbers, units,
value of sales)

Measurement or numerical validation of the respondent

Airtel: number of consumers, defection rate; market

share, number of service offerings; profitability; profit
growth
Quantitative Research is used to quantify the
marketing problem by generating data that can be
used statistically.

It is used to measure attitudes, opinions, interests

(AOI) using numbers.

This sample size is typically quite large.

Methods of Quantitative research include: online

surveys, paper surveys, telephone interviews, and
polls.
Modules
1

Introduction to
International
Marketing
5

Marketing
Challenges in the
Assessing Global Developing a 21st Century
Market Marketing Plan
Opportunities

3
2

Developing Global
Market Strategies

4
LG India: consumer insights for sales forecasts
 LG India: uses one single consumer insight

The company has launched flagship models across

product categories based on Indian consumer insight
REFRIGERATORS 

 
LG Electronics India on January 2016 launched its single
door refrigerator with smart inverter compressor
technology as part of its commitment towards
introducing products backed by Indian consumer insights.
LG India has set its sales forecast for single door
refrigerators at 40 per cent for 2017.

The five-star rated refrigerator was being launched

under the umbrella of Indian insight products and
is designed to meet the needs for Indian
consumers facing issues around expensive power
tariffs.
The new refrigerator range is priced between
₹26,000 and ₹ 27,000 in 270 litres.
 Test Marketing
Definition: test marketing is the stage at
which the product (with brand name
and packaging) is introduced into more
realistic market settings (AMA).
Understanding consumer needs for crafting
superior solutions

• Mahindra Gusto (2014) was launched after extensive qualitative research

motor scooter owners on what features they feel automated scooter
brand in Indian lack

• respondents were also asked what they would like to see as superior
features in a 110 cc automated scooter

• respondents sought premium features: height-adjustable seat, remote flip-

key, LED pilot lamps, find-me lamps and so on

• respondents wanted a feature rich product that offers enhanced product

functions like ridabililty , reliability, performance
 Mahindra Gusto
• the result of extensive qualitative research of over 5,000
respondents on perceptions of a world-class feature rich automatic
motor scooter
• respondents were selected based on prior motor scooter
ownership
• across 26 cities and 340 towns in India
• exploratory research design using convenience sampling design
• a longitudinal perception study conducted from 2010-2013
• results and findings were ready in early 2014
• the ‘mule’ vehicle was ready in late 2013 and tested across 20,000
km of variable road and traffic conditions
• 110 cc OAS designed to compete with Activa and Jupiter models
Select markets will be
testing a new
"Signature burger," to
go along with a small
drink and small fries
for $3.99.
McDonald's is now
taking the approach
of "Mini Meals.“
Simulated market
testing allows a
consumer to become
aware of a new
product in a simulated
real world setting.
SMT provides marketers
with an accurate
purchasing rate for sales
forecasting.
Simulated test
marketing primarily
serves as a forecasting
tool.
FMCG brands use ecommerce sites to test the market
Marico and Britannia pre-
launch niche and
premium products on
ecommerce sites before
sales in retail shelves.
This helps test the
acceptability of their
products in the
marketplace.
Marico decided to
pre-launch hair wax
Set Wet purely
through e-
commerce sites
almost six weeks
ahead of its formal
launch (May 2015)
Britannia launched Good Day
Chunkies on Amazon to test the
acceptance of the product (Nov.
2014).
Sold Chunkies exclusively on
Amazon for 15 days.
Through such initial online trials
Britannia understand target
audience (indulgence seeker)
 Streaming digital media devices
• Streaming set-top box or streaming stick

• A device that sync your digital storage and content to

a TV screen

• Live TV streaming of over 2000 channels

• Phone, app, tablet, phablet, laptop…

• …to a big screen for an unmatched viewing experience

Roku US$ 100
Amazon Fire TV (US$100)
Apple TV (US $70) STB
Google Nexus Player (US$70) SMP
Amazon Fire Stick (US$38)
 Media streaming devices

• The best is reserved for the last!

Google Chromecast (US$38) MSST
 Google Chromecast
• At $35, the Chromecast wins the affordability award on this list

• The HDMI dongle does not have a user interface, but

instead allows you to initiate streams using your smart phone,
tablet or PC

• Once synced the Chromecast pulls the content down from the
cloud

• 1080p download quality with Dolby surround sound

Emerging market is a
term that marketers
use to describe a
developing country, in
which investment
would be expected to
achieve higher returns
but be accompanied by
greater risk. 
Brazil, Russia, India and
China, Colombia, Indonesia,
Vietnam, Egypt, Turkey,
South Africa Bangladesh,
Egypt, Indonesia, Iran,
Korea, Mexico, Nigeria,
Pakistan, the Philippines,
Turkey and Vietnam (21)
Innovation also flows in the opposite direction—from emerging to developed
markets
• CavinKare, a little known
Indian FMCG company based
in Chennai pioneered the
sachet revolution
• Personal care product
packaged as single use items
not only multiplied sales but
also gave great product
penetration efficiencies in
kirana retail
C K Ranganathan started
CavinKare in 1983 with a seed
capital of just Rs. 15,000 and
invented the plastic pouch
that became a marketing
game changer for FMCG
brands
By selling
shampoo in
sachets priced for
50 paise-Rs. 1.00,
Ranganathan had
hit the jackpot at
the bottom of the
pyramid—a
theory made
popular later by
management guru
C K Prahalad .
Gillette Vector
Plus (Rs. 5 per
week) male
grooming product
has also made
aggressive
inroads into the
price sensitive
Indian market for
cartridge based
razor blades
• Pulpy (Orange), Coca-Cola’s first international fruit-based drink product to
be developed and marketed for consumers in low-income emerging
markets

• Pulpy is one of the most successful innovations of the brand in the 21th
century and significantly contributes to the brand’s global sales

• Pulpy, is almost an unknown brand in the consumers markets of Britain,

France or Germany

• Launched in China (2000) by the Minute Maid unit of Coca-Cola, the

beverage been accepted by consumers across Asia and Latin America

Strawberry-flavoured Minute Maid Pulpy

Super Milky
Pulpy Super Milky
Maaza Milky Delite (2010)

A fun innovation by Coca-Cola India is for

teenagers and young adults is available in a 200
ml slim tetra pack and has been affordably
priced at Rs 15.

The new beverage is a delicious blend of juicy

mangoes and milk developed especially by
Coca-Cola India in its Research &
Development Laboratory in Gurgaon.