Trying to create a global marketing strategy is not something easy to accomplish especially in certain industries. Companies are moving outside of their home country and what they're accustomed to and their strategy for gaining market share must be changed completely. However, many companies have been able to do so successfully and have been able to achieve international expansion providing an opportunity for growth in sales and profits.
What is global marketing? Global marketing is the process of adjusting and altering the company’s marketing strategy to adapt to the conditions and consumer wants/needs of the other countries. Are there benefits to having a global marketing strategy? Yes! Global marketing is a must to launch a successful product or service in a foreign country. The effectiveness of the product or service being launched is improved and can be beneficial for future launches. Understanding the foreign market in which you are launching the product is essential. It can lead to having a competitive advantage. Consumer awareness of your product or service and even the brand is increased through global marketing.
Let’s take Dunkin Donuts for example. Dunkin Donuts has over 3,100 stores in over 30 countries outside the US. Not only do they have a strong presence and customer awareness, but they have adapted their products to satisfy the sweet tooth of its global customers in each country. For example, in Lebanon, Dunkin Donuts understands that the Lebanese loves chocolate and are a big fan of fruits like Mango. This being said, they created The Mango Chocolate Donut which is extremely appealing to consumers in Lebanon. Similar to this, in Russia, Dunkin Donuts added Dunclairs and in Korea, they added their Grapefruit Coolata. They tailored some of their products in each country to satisfy the consumers. They analyzed the foreign market and adapted to it.
However, a company, like Dunkin Donuts, doesn’t go straight to a foreign market. For a company to take its’ product or service globally, there are a few steps one must take.
- The first step is that the company has to concentrate on their domestic side and their home country/market. There has to be an understanding of it’s current situation and how they’ve attracted their customer base.
- The second step is still focusing on the home country/market, however, exports are introduced and are being focused on.
- In the third step, the company is ready to take their product/service overseas to a foreign country and adaptation is introduced and realized.
- The fourth and last step is when the company creates value and launches its’ product or service to the foreign market.
Questions to ask when creating a global marketing strategy:
- What exactly is the company trying to achieve by taking the product or service to an international market?
- How valuable is this foreign market I am trying to go into for the company?
- How valuable is the company’s product or service for this foreign country?
- What are the strengths and weaknesses of the company in the foreign market?
- How will the company deal with challenges that arise in the market?