Globalization vs

Glocalization
Presented By;
Nishant Raval (Pharm. Analysis) A020
Dhwani Vansjalia (Q. A) A024
Kruti Patel (Pharmaceutics ) A004

Globalization
The tendency of investment funds
and businesses to move beyond
domestic and national markets to
other markets around the globe,

thereby increasing the

interconnectedness of different
markets.

Types of Globalization
Financial Globalization

Interconnection of worlds financial system

Economic Globalization

An economic system to permits easy movement of

goods, production, capital, and resources (free trade
facilitates this)

Technologic Globalization

Connection between nations through technology such

as television, radio, telephones, internet.

Political Globalization

Countries are attempting to adopt similar political

policies and styles of government in order to facilitate
other forms of globalization
e.g. free trade

Types of Globalization contd.

Cultural Globalization
Merging or watering down of the worlds
cultures e.g. food, entertainment, language.

Ecological Globalization
seeing the Earth as a single ecosystem rather
than a collection of separate ecological systems
because so many problems are global in nature.

Sociological Globalization
A growing belief that we are all global citizens
and should all be held to the same standards
and have the same rights.

New Rule of Globalization

Pfizer patent revoked in India and Cipla granted
for producing low price medicine.
Chinese government reducing drug prices. Also
included 500 medication in essential medicines.

Western markets vs Developing countries

New Phase of Globalization

Guarded globalization
Government of developing countries

They select company with whom they want

to do their business
Pick the sectors in which they allow capital
investments.

Factors affecting globalization

1. Local companies and consumer blocking foreign
entrants.
2. Countries have built large foreign exchange ,
boosted exports.
3. Governments are defining national securities more
broadly, so all the sectors are politicized.
4. International Businesses :now establishes rather
than follows
State Capitalism, in Emerging markets.
In China, State capitalism responsible for more
than countrys half of GDP and Job.

Globalization
Globalization
heyday

Strategic

Non Strategic

Lockheed
martin

Coca-Cola

New Risk in Globalization

Government monitor and fix prices in key industries.
UAE food prices are controlled

Many emerging market governments, worried about the

flow of information, keep tech companies under their
thumb.
Chinese government developing their operating system

Telecommunication is seen as a highly strategic industry.

RIM /Black-berry block in UAE countries.

Many countries rely on domestic banking system to

finance budget deficits.
Thailands banking system

Challenges to foreign companies can now come from

state- backed investigative journalists.
Investigation of KFCs van in China.

Strategies to manage guarded globalization

Stay home : Expanding business in other business
categories
Build it to stay : Nigeria produces only 5% of required
power.
Capitalize to state capitalism : Large components to
source components from local producers.
Become to diversified to fail : GEs investment plan in
China.
Strike alliances : Pfizers teamed up, allied ,
Investments in China
Teamed up with Zhejiang Hisun for low cost manufacturing
Allied with Jointown Pharmaceutical Group for extend to
reach in hospital.
Invested in Shanghai Pharmaceutical Industry for R&D
work.

Cons of Globalization
Losing their jobs in developing countries.
People under threat of their jobs being
outsourced.
Globalization has led to exploitation of
labour. Prisoners and child workers are used
to work inhumane condition.

Also take up market of local players.

Pros of Globalization
Creates jobs, global economic growth, make
companies more competitive and lower price for
consumers.
More influx of information between countries.
Corporation and governments are trying to short out
ecological factors.
More different culture adopting.
Speedy travel, mass communication and dissemination
of information through the internet as benefits of
globalization.

TATAs M&A with Jaguar and Land Rover

I think risk is a necessary part of business
philosophy. I view risk as an ability to be where
no on has been before. I view risk to be an issue
of thinking big, something we did not do
previously. We did everything in small increments
so we always lagged behind.- Ratan Tata.
US $2.3billion UK based overseas acquisition,

Aug 2007.

Impact of Global footprint.

Created global presences for better future.

Easy entry in European market.
Reduce country dependence.
Increase sales in emerging markets.
Opportunity to spread its business in different customer
segment.
With that got a right place to compete with current market
leaders BMW, Audi, Mercedes.
Access to large distribution network.
Strong R&D culture facility.

Globalization in country
Dubai, a famous for its natural resources.
But after being globalised a desert became a
trade destination.
Established itself as a prominent regional hub
for finance, trade , tourism, and shopping.
By Palm islands, and the most expensive hotel, The
Burj Al Arab
The Dubai mall, largest mall in the world.

GLOCALIZATION
Globalization

GLOCALIZATION

Localization

A combination of the words

"globalization
and
"localization" used to describe a
product or service that is
developed
and
distributed
globally, but is also fashioned to
accommodate the user or
consumer in a local market.

History
Originated in Japan.
First time the term glocalization in Japan in Japanese language was
used by Professor Roland Robertson, a sociologist.
Marketing experts were using it, by which they meant that products of
Japanese origin should be localized that is, they should be suited to
local taste and interests yet, the products are global in application
and reach, hence a new term glocalization was coined.

Though The products are Global, the Markets are

Local

With Glocalization a global companys goal isnt to say here is a product. Rather,
the company asks, "How can we make a product you'd like?

The marketing, funding and infrastructure behind a product may come from a global
corporation, but the local level dictates what finished form that product will take.
Therefore glocalization is a bottom-up system of governance for globalization

Many of the most successful global companies have adopted an organizational

approach that provides clear global strategic direction along with the flexibility to
adapt to local opportunities and requirements. Therefore, Glocalization is the
adaptation of a product for a local audience.

Principles of Glocalization
Importance of local actors: Local actors have their assessment of local
problems and needs, local knowledge, attitude to exercise governance over
issues that makes the difference in terms of success or failure in
development programs.
Use of globe knowledge: These include increased circulation of
knowledge, communication and peer-to-peer learning, and the possibility
to insert local actors and organizations into global communication circuits.
This can enhance the practice of a real multiculturalism.

Principles of Glocalization
The war/poverty nexus: At the core of the glocal approach, there is the
assumption that the most destabilizing factor of the current world crisis is
the vicious circle poverty/endemic war, proliferation of conflicts and spread
of violence.

The role of the city: Cities are the place where civil societies are emerging
with more strength. They are also engines of economic growth, centers of
cultural and intellectual innovation and privileged arenas for social empathy
and change as well as institutional reform. They can, thus, be considered as
the most relevant social units for glocalization strategies.

because

Hindustan Unilever
HLL has been the leader in recognizing the
tremendous opportunity lying at the bottom
of the pyramid .
sachets - small plastic packets , as less as
INR 1/.
This became such a rage among the rural
consumers that many other brands started
offering products such as detergent, coffee &
tea powder, coconut oil & tooth paste in
sachets.

Disneyland in Hongkong

Reduction of prices
Adaptation to local visitors customes.
Change of dcors and settings
Adaptation of labor practices

Lays in Global Market

Lays: Market Research

Do us a flavor campaign
Lets people create their own flavors.

Glocalization : Lays in China

It is sold as LE SHI in China which
means happy things.
It is effective way to create good
association with brand and build an
emotional
connection
with
consumers.

Local Flavors
According to Chinese peoples
preferences pepsico launched
CUCUMBER flavor in China.

Highest selling flavor in China.

Other special flavors for China are
NUMB & SPICY HOT POT, MEAT
flavor, KIWI flavor, BLUBERRY
flavor, SEA-FOOD flavor.

Packaging
Chinese people enjoy to sharing their snacks usually so they want
sizes & designs that make sense to serve in groups.
So they redesigned Lays stax packaging, The product has a plastic
tray inside the canister to allow sharing, which also reduce noise
from packaging and helps consumer to keep fingers clean.

Glocalization : Lays in Thailand

Through market research, it was discovered

that in Thailand perfecting salt level drives a
very high degree of liking.

So by slightly reducing the salt application

from the global design Lays scored big wins
with Thai consumers.

Local Flavors
Thai food & eating habits are very
different To those in the U.S, so
sour & onion like flavors didnt get
success in Thai market.
The team found SEAWEED is a
local flavor and came with that
flavor in Thailand.
Today SEAWEED flavor accounts
for 1/3 of sales in Thailand.

DUSTER SUCCESS STORY

DUSTER SUCCESS STORY

Renault entered India through a joint venture with Mahindra & Mahindra.
It place high hopes on its maiden product Logan

But if failed because of its outdated looks and high

pricing strategy.
Finally Renault identified the gap in the SUV segment.

DUSTER SUCCESS STORY

Renault then came up with Duster which was priced between Rs 8lakh to 10 lakh
200 families were surveyed in 5 different cities in India for an ethnographic
studies for 2 months.
The study enabled the company to understand what a car should have to meet an
Indian customer's needs & threw up 41 modifications that the Duster needed.

What changes were made??

Several changes in the car included reinforcing the suspension & offering

a higher ground clearance, adding more brackets to the car's doors as

they tended to be used roughly.

Tuning the engine to meet the quality of the fuel in India & deliver high
efficiency of at least 20 km per litre. They made the modifications with the
help of a local team within 12 months

CONSUMER BEHAVIOUR
In India cars remain an aspirational product bought more fortheir image.
. It is psychology and not economics that drives SUV buying. SUVs do provide
functional benefits such as more space, off roading capabilities, more power, and
flexibility of use.
. Renault understood this consumer psychology.
The Duster is designed with flared wheel arches, muscular body, roof rails, raised
suspension and big tyres - all visual indicators to create the right image.
Also, being small, it removes many limitations of a typical large SUV

DUSTER SUCCESS STORY..

Renault had to triple production from 7 /hour to 20 /hour. In October 2013, 1/3 cars
produced at the Oragadam plant was a Duster.
The Duster accounted for 86 % of Renault India's production, 81 % of its sales and 100
% of its exports. It has been able to grab 23% market share in the compact SUV
segment within a year

ABOUT STARBUCKS
Starbucks Coffee, is an American global coffee company and coffeehouse chain
based in Seattle, Washington.
Starbucks is the largest coffeehouse company in the world, with 23,187 stores in 64
countries, including 12,973 in the United States , 1,897 in China, 1,550 in Canada, 1,088
in Japan and 927 in the United Kingdom.
PRODUCT LINE:
coffee
tea
Frappucino beverages
pastries
smoothies.

STARBUCKS IN CHINA
Entered China market in 1999.

China- A land of tea lovers!!

Smart positioning- no advertising campaigns
Focus on High-visibility and High traffic locations.
Introduced popular local beverages using green tea.Black sesame green tea Frappucino.(According to the flavour of Chinese people).

STARBUCKS IN CHINA
chic interior, comfortable lounge chairs, upbeat music.

appeal to younger generations who fantasize about Western coffee culture as a symbol of
modern lifestyle.
moon cakes for the Mid-autumn Festival
Iced Rice Dumpling for the Dragon Boat Festival.
Unique local heritage : beautiful wood carvings and traditional wood tables.
The Starbucks store atmosphere is one which is similar to the old teahouse of Chinaa
gathering place and a community living room.

STARBUCKS IN CHINA

STAR BUCKS IN INDIA

Tata Starbucks Ltd is a 50:50 joint venture company, owned by Starbucks
Corporation and Tata Global Beverages, that owns and operates Starbucks outlets in
India

CHALLENGES IN INDIA
Starbucks had previously attempted to enter the Indian market, in 2007, with

a joint venture involving its Indonesian franchise and Kishore Biyani of the
Future Group.
competition from established coffee chains- Caf coffee day & Barista.
Tata group opened doors for StarBucks.

PRODUCTS
Starbucks in India has some Indian style product offerings such as Tandoori

Paneer Roll, Elaichi Mawa Croissant and Murg Tikka Panini to suit Indian
customers.
Currently, Starbucks operates 50 outlets in 6 cities of India.

INDEED, IT WAS A HUGE SUCCESS IN CHINA

AND INDIA !!!

STAR BUCKS IN AUSTRALIA

WHY IT FAILED IN
AUSTRALIA ?
Star Bucks didn't seem to pay much attention to product optimisation.

They just took what worked in the US, and tried it here.
Unfortunately for Starbucks, what worked in the US was bitter, weak coffee
augmented by huge quantities of milk and sweet flavoured syrups. Not so much
coffee, as hot coffee-based smoothies.

STRATEGIES WHICH FAILED

Starbucks grew organically in America, in Australia it tried to impose itself

upon people.
It took key sites. It hung huge signs. It even tried to get people to order coffee
in sizes.
And with weird names (Decaf Mocha Grande anyone?) Basically, Starbucks
said to people: "That's not how you drink coffee. This is how you drink coffee.

STRATEGIES WHICH
FAILED.
Also Starbucks did not advertise in the mass media relying instead on its

reputation it failed to communicate its brand.

Home-grown chains such as Hudsons and Gloria Jeans were doing quite well
for themselves. But they're succeeding because they're offering a brand
experience that is comfortable to Australians (no weird drink names, just two
lattes and a cappuccino).

STRATEGIES WHICH
FAILED.
Finally, Starbucks' business model was simply unsustainable. Leasing a large,

expensive shop space and inviting customers to sit around for as long as they
like while spending very little was never a good idea in a highly competitive and
mature market.

IMPACT OF CULTURE ON
BRANDING
Cultural differences are indeed a major factor that has an impact on
the success or failure of a brand.
As brands enter different cultures, it becomes imperative for them to
carefully tread the standardization customization
continuum wherein they not only manage to retain the inherent brand
identity
It also adopt the brand elements (images, advertising, channels, and
others) to appeal to the local tastes and preference of customers

WEAVE THE BRAND INTO CULTURAL

FIBER
The increasing popularity of the Internet offers brands a very powerful
tool to involve customers and bring the brands closer to the local culture
by providing them a platform to interact with the brand in their
customers terms.
Creation of online discussion groups, and online brand communities is
a firm step towards co-creating brand value with the customers.
By weaving the brand essence into the societal fibre, brands can
leverage cultural differences to their advantage

UNDERSTANDING THE CONSUMPTION

PATTERNS
Individualistic and collectivistic cultures tend to be the two ends of a
continuum.
Individualistic cultures supports customers to make consumption decision
based on their personal choice, at an individual level.
On the other hand, collectivistic cultures supports customers to make
consumption decisions on a group level (family,extended family, network of
friends and even community).
These differences hold the key to many branding strategies when entering
new markets

GLOBALIZATION VS.
GLOCALIZATION

GLOBALIZATION Vs. GLOCALIZATION

A PARABLE OF BLIND MEN & ELEPHANT

STEGERS ARGUMENTS
The ongoing academic quarrel over which dimension contains the essence
globalization represents a postmodern version of the
parable of the blind men and the elephant.

Some global experts think Economics lies at the centre of globalization, wher
others privilege political, cultural ,ideological aspects.
Thus, Glocalization is primarily rooted within Globalization. Hence it is
about adapting needs and wants according to the customer.

 Think

global, Act
local

THANK YOU