Transcript Nestle 1983
Nestles Multidomestic Strategy Germany Switz. France U.S. Nestle 1983 Structure HQ Product Dir. Marketing Svc. Large Country Manager Production Mgr. Financial Mgr. Marketing Mgr. Product 1 Mgr. Small Country Manager Product 2 Mgr. Production Mgr. Financial Mgr. Marketing Mgr. Marketing Activities Strategy: Multidomestic vs. Global – How standardized or localized should the marketing program be? 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? Forces? Standardized Strategy Localized Product Names in Chinese: “Bite the wax tadpole” Castlemain XXXX lager in US: “Fourex (condoms)” Olympia ROTO copiers in Chile: “broken” or “low-class” Coca-Cola Marketing In India it’s the Taj Mahal (a mausoleum); in New York it’s the Helmsley Palace United Airlines ad in Australia: Crocodile Dundee camps it up (…means Dundee flaunts his homosexuality) Guinness is good for you ...attracts pregnant women as key customers Centralization and Standardization The degree to which HQ has decision-making authority. Centralized Forces for centralization?? HQ Influence Decentralized 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 Branding Centralized Price Packaging Product Advert. HQ Influence Decentralized ? Promo. Standardized Strategy Localized Managerial Roles Product Manager – Strategist, architect, coordinator Country Manager – Sensor, builder, contributor Functional Manager – Specialist, cross-pollinator Nestles’ New Marketing Structure Nestle HQ US Product Position Branding/Logo Packaging Pricing France Italy Germany Advertising Advertising Advertising Advertising Channel Channel Channel Channel