Convergence And Communication Strategies

1|P a g e Group1TermPaper

ConvergenceandMarketingCommunicationAdaptationbyMNCs

MMIITermPaperLalBahadurShastriInstituteofManagement

61-NehaShrivastava62-SagarPatel63-RiteshDhundhuani64-PragyaaShreePrasad65-SanchitJain84-RatulNagpal


Convergence&Marketing

CommunicationadaptationbyMNCsABSTRACTInaglobalisedworlditmakesstrategicsenseforcompaniestoexpandtheiroperationsacrossnationalboundaries.Theygetaccesstonewmarketsandkeyresourcessuchasspecializedskills,mineralresourcesandnewsourcesofinformation.Howevertheopportunitiesthatcomesbytheirworldwidepresence–upneedtobeconvertedintocompetitiveadvantage.AndforthisMNCsneedtolaunchtoadapttotherightstrategies ofmarketing communication, build organizational capabilities andmanage operations in adiverse, complex and volatile competitive international arena. Alsomanymarkets are converging, ascommunicationandlogisticsnetworksbecomemoreintegratedandfirmsfromallpartsoftheworldareexpanding operations on a global scale. This purpose of this paper is to study how convergence andmarketingcommunicationsarebeingadaptedbyMNCsacrosstheglobeandexaminehowthisstrategyinmarketingworksandhowwellithasbeenemployedbythecompanies.

Objective:TostudyhowconvergenceandmarketingcommunicationadaptationhavebeenusedbyMNCsandhoweffectiveithasbeenforthem.

Methodology: This methodology followed for this paper is intensive studying of various businessjournals, newspapers and articles which highlight the Adaptation strategies employed by MNCs inmarketing.ThestudyalsoincludesanalyzingvariousarticlesandvisitingwebsitespertainingtothehowleadingMNCshaveadoptedtheglobalstrategiesformarketcommunications.

INTRODUCTION

Background:

With the ever faster communication,transportation,andfinancialflows,theworldisrapidly shrinking. Countries are increasinglymulticultural and products and servicesdeveloped in one country are findingenthusiasticacceptanceinothers.Just as the internationalization boom of the1990sprovedinstructivewithregardtomarketassessment,sothereismuchtobelearnedfrom

the marketing strategies adopted at entry bywesterncompaniesinemergingmarkets.Whilemost attention has been paid tomarket entrymodequestions, suchas thechoicebetweenajoint venture or a subsidiary, it is notable thatmostMNCsmade the same assumption abouttheir marketing entry strategy—namely, thatthey would replicate the competitive strategythathadservedthemwellindevelopedmarkets,transferringtheirdevelopedmarketbrandsand


strategies to emerging economies withoutadaptation.Thedramaticchangestakingplaceintheglobalmarketplacethushaveimportantandnecessaryimplications for themarketing strategies to beadoptedby the leadingandotherMNCs in theworld. These companies need to reformulateand reorganize their global marketing strategykeeping inmind the convergenceofmarketingcommunicationsandlookatabroaderaspect.Sothisincludestryingtodevelopnewinitiativestostimulateandgaindemandintheirtraditionalmarketsaswellastointroducenewstrategiestotarget wide range of growth opportunities inother countries throughout the world. Despiteshiftingborders,unstablegovernments,foreign-exchange problems, corruption andtechnologicalpiratingcompanies(MNCs)sellinginglobalindustriesneedtointernationalizetheiroperations.Themultinationalandtheglobalcorporationarenot the same thing. The multinationalcorporationoperates inanumberofcountries,andadjustsitsproductsandpracticesineach—at high relative costs. The global corporationoperates with resolute constancy—at lowrelative cost—as if the entire world (or majorregions of it) were a single entity; it sells thesamethingsinthesamewayeverywhere.Which strategy is better is not a matter ofopinion but of necessity. Worldwidecommunicationscarryeverywheretheconstantdrumbeatofmodernpossibilitiestolightenandenhancework,raiselivingstandards,divert,andentertain.Thesamecountriesthatasktheworldtorecognizeandrespecttheindividualityoftheirculturesinsistonthewholesaletransfertothemofmoderngoods,services,andtechnologies.Toturnaroundtheirbusinessinthesemarkets,multinationals must in effect reenter themarkets by rethinking theirmarketing strategyattwolevels:

• First, they must embrace a mass-marketing mindset. While most MNCshave lost the mass-marketingcompetence that made them hugecorporations in the firstplace (because

of the intensified competition andfragmentation that has developed intheir home markets), this approach issuitable both for current conditions inemergingmarkets. Thismindset,whichincludes the need for aggressiveattention to price competitiveness,shouldbereintroducedasthemedium-term goal of the MNCs in emergingmarkets.

• Secondly,MNCsmustdevelopdynamicstrategies for reaching those massmarkets; in effect, market expansionstrategiesthatwilltakethemoutoftheeliteniche.

Convergence is a constantprocess, not anendpoint. Technology, creativity, and media areconstantly evolving, and so is the convergedcompany.Itisanever-endingchallengetoadapta customer experience that, in our digital age,willalwaysbeinflux.Toooften,businessesarefar behind consumers in embracingtechnological change, a problem that haseverythingtodowithhowtheorganizationissetup.ProblemdiscussionWithin the field of international businessmarketing, decision of standardization oradaptation issue isoneof the longestdebates.ThedifferencesbetweenMNCs’homemarketsand the emerging markets in externalenvironment could make different ofinternational business marketing strategy andinfluence performance ofMNCs. As advocatedby Jansson (2007) it isnotpossible toseparatetheworldofbusinessfromthesocialside,asforexample the world of politics or ethics.ThereforeMNCsshouldfindouthowtheymustadjustabusinessmarketingstrategyinordertohow adapt convergence and marketingcommunications-bestfitnewmarketdemands,suitlocaltastes,meetspecialmarketneeds.Tobesuccessfulandcompetitiveeveryfirmhasto use special policy and strategy for eachmarket. Positioning of the product and brand,


channelsofdistribution,typesofpromotion,andidentificationofcustomerneedtobematchedindifferentmarkets.In the last decades, business in general hasincreased andmost companies have extendedtheir product offerings across nationalboundaries and cultures respectively. Theresearchershavealsoobservedthatinthequestto maintain a market share in the escalatingcompetition in internationalmarketsaswellasto realize profits, multinational corporations(MNCs)areconstantlyfacedwiththechallengetoremaineconomicallyafloatbydecidingwhichproductstrategytouseastheyenterandstrivetosurviveininternationalmarkets.FACTORSWHENENTERINGNEWMARKETSForanyMNCtodecidetoenterintoanymarketit is important to take intoconsiderationmanyfactors. These factors or drivers actuallyimportant aspects for the entry of a companyintoanynewmarketorstrengthenitspositioninitsexistingmarketIndustryGlobalDrivers:There are four broad groups of industryglobalizationdrivers–market,cost,Governmentandcompetition(Table-1below).

Together,thesefoursetsofdriverscoverallthemajorcriticalindustryconditionsthataffectthepotentialforglobalization.Driversareprimarilyuncontrollablebytheworldwidebusiness.Each industry has a level of globalizationpotential that is determined by these externaldrivers.Howmanymarketstoenter:Thecompanymustdecidehowmanycountriesor regions to enter and how fast to expand.Typical entry strategies are the waterfallapproach, gradually entering countries insequence,andthesprinklerapproach,enteringmany countries simultaneously. Increasingly,firms–especiallytechnologyintensivefirms-arebornglobalandmarkettotheentireworldfromtheoutset.BMW,GeneralElectric,Benetton,Ranbaxyhavefollowed the Waterfall approach. It allows forfirmstocarefullyplantheirexpansionandislesslikely to strain human and financial resources.Whereaswhen firstmoveradvantage is crucialand a high degree of competitive intensityprevails, the sprinkler approach is adopted.Microsoftsoldover150copies ofWindows 7 in 100 countries in 2009withonlyminormarketingtweaks.


DevelopedorDevelopingMarkets:One of the sharpest distinctions in the globalmarketingisbetweendevelopedanddevelopingoremergingmarkets.Theplateauinggrowthinthe developed world has resulted in a costlybattle for market share. Driven by a growthimperativeandfacedwithslackeningdemandintraditionalmarkets,firmshavebeencompelledtoincreasepromotionalexpensesandinnovate(e.g. developing new products or new product

variants)tomaintainmarketposition.Asaresultmany firms are looking for new growthopportunities the developed world. Theseinclude both large emerging markets such asIndia,ChinaandBrazilandsecondtieremergingmarketsreferredtoasNext11suchasIndonesia,Turkey, Egypt, Nigeria, Mexico, the PhilippinesandVietnam.

DecidinghowtoentertheMarket:Onceacompanydecidestoenteraparticularentry,itmustdeterminethebestmodeofentry.Itsbroadchoicesinclude:

IndirectandDirectExport:

Companies typically start with export,specifically indirect exporting, i.e. they workthroughindependentintermediaries.Domestic-basedexportmerchantsbuythemanufacturer’sproductsandthensellthemabroad.

Domestic-based export agents, includingtrading companies, seek and negotiate foreignpurchasesforacommission.

Cooperative organizations conduct exportingactivities for several producers – often ofprimaryproductssuchasfruitsornuts-andarepartlyundertheiradministrativecontrol.Exportmanagement companies agree to manage acompany’sexportactivitiesforafee.Successfulcompanies adapt their Web sites to providecountry-specificcontentandservicestohighest

potential international markets, ideally in thelocallanguage

Licensing:

An international licensing agreement allowsforeign firms, either exclusively or non-exclusively to manufacture a proprietor’sproductforafixedterminaspecificmarket.

Summarizing,inthisforeignmarketentrymode,a licensor in the home country makes limitedrights or resources available to the licensee inthe host country. The rights or resources mayinclude patents, trademarks, managerial skills,technology,andothersthatcanmakeitpossiblefor the licensee tomanufactureand sell in thehost country a similar product to the one thelicensorhasalreadybeenproducingandsellingin the home country without requiring thelicensortoopenanewoperationoverseas.

Thelicensorearningsusuallytakeformsofonetime payments, technical fees and royaltypaymentsusuallycalculatedasapercentageofsales.


JointVentures:There are five common objectives in a jointventure:marketentry,risk/rewardsharing,technology sharing and joint productdevelopment, and conforming to governmentregulations.Otherbenefitsincludepolitical

connections and distribution channel access that may depend on relationships.[30] Such alliances often are favourable when:

• The partners' strategic goals converge while their competitive goals diverge

• The partners' size, market power, and resources are small compared to the Industry leaders

• Partners are able to learn from one another while limiting access to their own proprietary skills

MARKETINGSTRATEGIESBYMNCsAny marketing strategy focus on the idealproduct mix to achieve maximum profitpotential. Multinational Corporations mustdecide how much to adapt their marketingstrategytolocalconditions.Atoneextremeendis the Standardized marketing Strategyworldwide, which promotes cost effectivemarketing.Someofthebenefitsofthisprograminclude:

• Economies of scale in production anddistribution,

• Lowermarketingcosts,• Ability to leverage good ideas quickly

andefficiently,• Uniformityofmarketingpractices.

At the other extreme is an adaptedmarketingstrategyinwhichthecompany,consistentwiththe marketing concept, believes consumerneedsvaryandtailorsmarketingtoeachtargetgroup.

Consumer behavior may reflect cultural andsocialdifferencesthatcanbepronouncedacrosscountries.Hofstede identifies 4 cultural dimensions thatcan be used to differentiate countries andregions:

• Individualism versus Collectivism: Incollectivistsocieties,theself-worthofanindividual is rooted more in the socialsystem than in individual achievement.(HighCollectivism:Japan;Low:USA)

• High versus low power distance: Highpowerdistanceculturestendtobelessegalitarian.

• Masculine versus Feminine: This factormeasures how much the culture isdominated by assertive males versusnurturing females. (High Masculinity:Japan,Low:NordicCountries)

• Weak versus strong uncertaintyavoidance: This dimension defines therisk taking ability of the society as awhole.

Consumer behavior difference as well ashistoricalmarket factors leads tomarketers toposition brands differently in various differentmarkets.Forexample:- Heineken beer is a high-end super-premiumoffering in the United States but a middleproductintheDutchmarket.-AlsotheToyotaCamry istheessentialmiddleclasscarintheUnitedStatesbutisatthehigh-endinChina.International strategy scholars have observedthat allMNCs do not follow similar strategies.For ease of understanding the model belowexplains the pre-dominant strategies followedbydifferentMNCs.


TheEuropeanMNCsfollowedtheMultinationalstrategies-Focusesprimarilyononeofthedifferentmeans– national differences – to achievemost of itsstrategicobjectives.- Focus is on revenue side, by differentiatingtheir products & services in response to

customerneeds,industrycharacteristics&Govt.regulations.- Subsidiaries depend on local-for-localinnovations,aprocesstoidentifylocalneedsanduseitsownresourcestorespondtothoseneeds.

The US MNCs followed the Internationalstrategies-MNCs headquartered in large technologicallyadvanced countries adopted this strategicapproachtoexploithome-countryinnovations.- Centralize those resources that are key todevelopinginnovations;-Gowhere localsdon’thaveyourskills.Powersystems, Airplanes, specialized machinery andotherHi-techequipment.The Japanese MNCs followed the Globalstrategies.-Utilizesproductstandardization.Products likewatches, music systems, PCs and cameras areglobal products. Assuming that the consumerlooksforfunctionality,qualityandlowcostonly.

- Best use of experience curve and highefficiencies.- This is the low cost strategy that dependsprimarilyondevelopingglobalefficiency.Transnational strategies are not countryspecific-Corecompetenciescandevelopinanywhereofthefirmsworldwideoperations.- Flow of skills & product offerings occurthroughoutthefirm.(Globallearning)-Makessensewherethereispressureforbothcostreduction&localresponsiveness- Focusesonmanagementof costs& revenuessimultaneously with efficiency and innovationbothimportant.


GLOBALPRODUCTSTRATEGIESDeveloping global product strategies requiresknowingwhattypesofproductsorservicescanbe easily standardized and appropriateadaptationstrategies.PRODUCTSTANDARDIZATIONThe firstview is thestandardizationstandpoint(as proposed by Jain, 1989; Levitt, 1983).According to these authors, supporters ofstandardizationbelievethat there isaunionofcultures with similar environmental andcustomerdemandaroundtheglobe.Theyarguethat tradebarriersaregetting lowerand thosetechnologicaladvancesandfirmsaredisplayinga global orientation in their strategy. As theybelieve, creating one strategy for the globalmarket and standardizing the marketing mixelements can achieve consistency withcustomersaswellaslowercosts.Levitt (1983) argues that companies that aremanaged well have moved away fromcustomizing items to offering globallystandardized products that are advanced,functional,reliableandlowpriced.Accordingtohim, companies can achieve long-term successbyconcentratingonwhateveryonewantsratherthan worrying about the particulars of whateveryonethinkstheymightlike.Standardizationandinternationaluniformityhasmany advantages. For one, people can expectthe same level of quality of any specific brandanywhere around the world. Standardizationalsosupportspositiveconsumerperceptionsofa product (Products and InternationalMarketing, n.a). If a company enjoys strongbrandidentityandastrongreputation,choosinga standardized approach might work to itsbenefit. Positive word-of-mouth can mean anincreaseinsalesaroundtheglobe.Anotheradvantageincludescostreductionthatgiveseconomiesofscale.Sellinglargequantitiesof the same, non-adapted product and buyingcomponents in bulk can reduce the cost-per-unit.

ExamplesofStandardizationofproduct:ConsiderthecasesofCoca-ColaandPepsi-Cola,which are globally standardized products, soldeverywhere and welcomed by everyone. Bothsuccessfully cross multitudes of national,regional, and ethnic taste buds trained to avarietyofdeeply ingrained localpreferencesoftaste, flavor, consistency, effervescence, andaftertaste.Everywherebothsellwell.Cigarettes,too,especiallyAmerican-made,makeyear-to-year global inroads on territoriespreviouslyheldinthefirmgripofother,mostlylocal,blends.PRODUCTADAPTATIONWarrenKeeganhasdistinguishedfiveproductandcommunicationsadaptationstrategies:StraightExtension:Itintroducestheproductin the foreign market without any change.TemptingbecauseitrequiresnoadditionalR&Dexpense, manufacturing retooling, orpromotional modification, it’s been successfulfor cameras, consumer electronics and manymachine tools. In someother cases it canbeadisaster.Product adaptation: This strategy alters theproduct tomeet local conditionsor likingsandpreferences. Flexiblemanufacturing enables todosoinseveralways.Acompanycanproducearegionalversionofitsproduct, for example, such as a WesternEuropean version. Finnish cellular phonesuperstarNokiacustomizedit6100seriesphoneforeverymajormarket.Alternately, a company can produce a countryversion. Kraft blends different coffee for theBritishandfortheFrench.A companymayalsoproducedifferent retailerversions.


ProductInvention

BackwardInvention:thisstrategyreintroducesearlierproductformswelladaptedtoaforeigncountry’sneedsandwants.ForwardInvention:Itcreatesanewproducttomeettheneedinanothercountry.

GLOBALCOMMUNICATIONSTRATEGIES:Changing marketing communication based oneach of the local market is a process calledCommunication Adaptation. We can have 5numbers of strategies revolving aroundadaptation–consideringboththeproducttobemarketedandalsothecommunicationstrategytobeadopted.1. Product and Communications Extension –DualExtension:At one extreme, a company might choose tomarketastandardizedproductusingauniformcommunications strategy. Early entrants in theinternational arena will often opt for thisapproach. Also, small companies with fewresourcestypicallypreferit.Dual extension might also work when thecompanytargetsa‘global’segmentwithsimilarneeds. E.g. The Japanese firm, Shiseido, theworld’ssixth-largestcosmeticscompanybysalesvolume,sellsinEurope,theAmericasandacrossthe Asia- Pacific, including Australia and NewZealand.2. Product Extension – CommunicationsAdaptation:Because of differences in the cultural orcompetitive environment, often the sameproductisusedtoofferbenefitsorfunctionsthatdramatically differ from those in the homemarket.Thesedifferencesbetween the foreignandhomemarketdrivecompaniestomarketthesame product using customized advertisingcampaigns.E.g.:ClothingCompanyLevi’susesthisapproach.AlthoughthefamousLevi’sbrandnamecarriescloutinmanypartsoftheglobe,andthebasics

such as manufacturing and distribution arepursuedbyLevi’srelativelyuniformly,therearewidedifferencesinitscommunicationstrategieswithindifferentmarkets.3. Product Adaptation – CommunicationsExtension:Alternatively, firms might adapt their productbut market it using a standardizedcommunications strategy. Local marketcircumstances often favor the case of productadaptation. Another source for productadaptationisthecompany’sexpansionstrategy.Many companies add brands to their productportfolioviaacquisitionsoflocalcompanies.E.g.: British Petroleum- BP delivers a series ofadapted energy products in more than 100countries (e.g., different formulae of petrol tomeet each country’s unique regulations).However, thecorebrandvalues remainalmostidenticalandthecommunicationstrategiesandcommercialsareverysimilarineachmarket.ThelogoandmostvisibleaspectsofBParemarkedlyconsistentinmostcountries.4. Product and Communications Adaptation –DualAdaptation:Differences in both the cultural and physicalenvironments across countries call for a dualadaptationstrategy. Insuchcircumstances, themostviableoptionforinternationalexpansionisadaptation of the company’s product andcommunicationstrategy.E.g.: Kellogg’s Pop-Tartswere a huge failure inGreat Britain for two reasons, one, very fewhomeshadtoastersandsecond,Pop-TartsweretoosweettastingfortheBritishpallet.Kellogg’s

StepsinProductinvention:1.Defineyourproduct2.Defineyourmarket3.Definethebusiness4.Identifymajordriverpushingyourproduct.


wouldhavetoadapttheirproductforamarketthat lackedtoastersandchangetheproducttomakeitlesssweet.5.ProductInvention:Genuinelyglobalmarketerstrytofigure-outhowto create products with a global scope ratherthanjustforasinglecountry. Insteadofsimplyadapting existing products or services to thelocalmarketconditions,theirmindsetistozeroinonglobalmarketopportunities.E.g.: Black & Decker is a good example of acompany that adopts the product inventionapproach to international market expansion.Black&Deckeraimstobringoutnewproductsthatcater tocommonneedsandopportunitiesaroundtheworld tomanage itsglobalproductdevelopmentprocess.CHANGE IN DISTRIBUTION STRATEGIES – ANIMPLICATIONOFCONVERGENCESinceits introductiontotheworldofICTinthe1970s, the term “convergence” has come tomean something different to just abouteverybody you ask: “fixed andmobile,” “voiceand data,” “access devices,” “media andentertainment,” “unified communications” . . .the list goes on and on. Too many people,however, consider convergence a technologyissue and overlook the wider businessimplications—includingitsimpactonmarketingand,inparticular,digitalmarketing.CommercialImplicationsAtthecustomerlevel,convergencewillforcetheCIO to reconsider the supply chain and theorganizations sourcing strategy. Network- andapplication-level convergence will also changetheneedsandbehaviorsoftheendusers,drivingachangeintechnologyrequirements.Suppliers will have to address these changingcustomerrequirements,butthey’llalsowanttoconsider:

• How to address the doors that havebeenopenedtonewentrants—andnewapproaches

• The increasing need for systems to beinteroperable

• TheCIO’sneedtoaddressthestrategicdriveforimprovedproductivityandcostreduction

Providerswillobviouslyneedtobeawareoftheincreasing threat of new entrants as alltechnologyplayersmakeamovefortheservicesspace. Add to this the fact that the digitalrevolution is fuelling disintermediation andsubstitution in all areas, and you’ll need toconsider what this means for your portfolio,pricing, and sector strategies. In addition toensuring that yourvaluepropositionaddressesthechangingroleoftheCIO,youmayalsohaveto workmuchmore closely with organizationsthat are also or have previously been yourcompetitors.These"fiveC's"areareasinwhichsomeofthemost interestingnew "fusion" concepts canbedeveloped:

• Customerization—Convergence ofcustomized and standardized offeringsandmessages

• Community—Convergence of virtualandphysicalcommunities

• Channels—Seamless convergence ofcall,click,andvisit

• Competitive value—Convergence ofnew and traditional competitive valueequationsandpricingmodels

• Choice tools—Convergence of newsearch engines and decision tools forconsumers and company-providedadvice

Theseareareasinwhichnewtechnologiesandsystems create opportunities for customers todothingstheycouldneverdobefore,but theyarealsoareasinwhichcustomersarecreativelycombining the old with the new to create afusion. Most of the initial discussion of thesetopics over the past few years has focused on


whatconsumerscandointheseareasemployingnewtechnologies.Convergence can also create amergedmarketwere a product was once considered acommercial product is now blurred into aconsumer/commercial product. For examplethe personal computer (PC) is now both aconsumerproductandacommercialproduct.Atthelower-endofitsprice/performancecurveisfocusedonthehomePCmarketandthehigher-end is focused on commercial products likeservers and workstations. The convergingtechnology will cause a threat of productsubstitutes to a firm. As the railroadsexperiencedwiththeadventoftheautomobileand airplane or the film photographyexperienced with the advent of the digitalcameraCONVERGENCEANDIMOLICATIONSONMARKETINGCOMMUNICATIONADAPTATION:As managers become more mobile and moveacross national borders from one country toanother, increasing cultural diversity in theiroutlookcreatesgreaterinterestsandsensitivityto culturally and economically diverse marketopportunities. The spread of communicationlinksbetweenandwithincountriesandregionsandproliferationofthetechnologyhasfurtherfacilitated the firm’s ability to develop marketknowledge competencies in relation tocustomers,competitorsandsuppliersaswellasthemarketandinstitutionalinfrastructure.Hence there is abundance of opportunities forthe leading MNCs to make use of thesetechnology, gain more insights into theconvergence of tastes, preferences, wants ofcustomersandtherebydeveloptheirmarketingcommunication strategiesandalsodecidehowtouseMarketingAdaptation.We already have a lot of MNCs using theconvergence intheirmarketingcommunicationadaptation strategies. A few examples arementionedbelow:

AFEWEXAMPLESMcDonald's and the Marketing Mix :Onecompanythathasmanagedtohighlightthebenefits of both the standardized andadaptationapproachisMcDonald’s.Withmorethan 33,500 restaurants in 119 countries thecompanyskillfullymanagesitsfranchisemodel,delivering a remarkably consistent customerexperienceandbranding(I’mlovin’It)whilestillallowing for locally relevant menu and servicevariationsinsegmentsacrosstheglobe.Furthermore, all advertisements are shot in 12different languages, featuring the customizedproducts catered to each region. In 2003,McDonald's introduced the McArabia, aflatbread sandwich, to its restaurants in theMiddleEast.ItalsointroducedtheMcVeggieinIndiaandtheEBI-Fillet-OshrimpburgerinJapan.Gillette:Gillette has sold variations on its razors andblades,includingversionsgearedtowomenApple:Applecomputer’shighlysuccessful“Macvs.PC”adcampaignfeaturedtwoactorsbantering.OneisHip(Apple)andtheotherisnerdy(PC).AppledubbedtheadsinSpain,FranceGermanyand Italy but chose to reshoot and rescript fortheUnitedKingdomandJapan–twoimportantmarkets with unique advertising and comedycultures.TheUKadsfollowedasimilarformulabut used two well known characters andtweakedthejokestoreflecttheBritishhumor.Whereas the Japanese ads avoided directcomparisonsandweremoresubtleintone.LG:ThirdTimeLucky:After two failed joint ventures, it made a re-entryintotheIndianmarketin1998allbyitself.LG began with a rapid national roll-out, masscommunication and products adaptedspecifically for Indianmarkets. It used product


customization to suit the needs of Indianconsumersandgainedlotsofprofits.Hyundai:When Hyundai came to India in 1998, with aname prone to mispronunciation and virtuallyno,itsignedupShahRukhKhantoeducatetheconsumersabout thebrand.Behind the scene,the company resorted to extensive marketstudies and technical camps before coming upwith its first offering, Santro. Todate,Hyundaihasstayedtruetoitsstrategyandplayedbytheconventional Indianmarket rules to tailored tosuititsspecifictargets.KELLOGG’S:FromtastelesstotastefulKellogg’s is one of the most successful Globalbrands from U.S. which was world’s leadingproducerofcerealandconveniencefoods. It ishugely popular breakfast cereal brand that isbeingsoldin160countrieswithsalesturnoverofover$9billion.OnitsinitialentryintotheIndianmarket, it used similarmarketingmix which ithadbeenusinginotherGlobalmarketsWhen Kellogg’s first entered India in 1994, itheavilybetontransformingtheIndianbreakfastcereal market through switching breakfasthabits of Indian consumers who were used tohot breakfast foods. The companywanted theIndianconsumertochangeitstraditionalhabitsofhavingeitherIdliDosasorParanthasintheirbreakfast and these habits too varied fromregion to region with the northern regionpreferring Paranthas and southern regionpreferringIdlis,andVadasetc.andthewesternregionpreferredalternativeslikePohaReebok:Despite all these setbacks faced by company,Reebokeventuallycameoutasawinnerinthe

Indianmarketwitha53percentmarketshareofthe branded sportswear market with anestimated size of Rs. 3500 crore per annum.Reebok as a brand enjoys total brand recall inIndianmarket and it is available at the lowestpricepointstartingfromRs.990perpairwhichhelpedtoestablishthebrandasamassmarketbrandfortheIndianmarket.Thebrandhasgotmorethan300storestocatertothelowerendof the market offering close to 80 SKU’s forunder Rs. 2590. The company to grow furtheraddedalotmoreofproductlinesandSKU’sforadults,kids,teenagersandevenfemalessothatitcouldgrowitsmarket.IthaslaunchedalotofsubbrandsintheIndianmarketnamed–Easytone,FishFry,andseparaterange for kids, women and senior citizenskeeping in mind the different requirements ofthesedifferentkindsofconsumers.Reebok also now has come up with latesttechnology shoes called Reezig its energyRunning shoes for health freaks. It iscommunicatedonthetelevisionasfitnessfreakshoes positioning it like that during marketingcommunicationCONCLUSION:In summary, it is important to note theconverging status of consumers all around theworld and their changing preferences. EverycompanybeitaMNCoradomesticcompany,initsaimtodeliverthebestvaluetoitscustomershould take into consideration the latesttechnological advancements and plan theirmarketing communication effectively. Theyshouldwiselydecidewhichadaptationstrategytousesothatinthelongrunitfetchesthemthemostprofitablebusiness.


REFERENCES:

Books:1.MarketingManagementByKotler,Philip;Keller,KevinLane;Koshy,Abraham&Jha,Mithileshwar.http://www.ftpress.com/articles/article.aspxhttp://www.slideshare.net/friendlyankurpandey/marketing-strategies-progremmes-adopted-by-mncs-in-india-according-to-indian-culture-consumer-behaviourhttp://successfulglobalmarketing.weebly.com/untitled/global-marketing-strategy-standardization-vs-adaptationhttp://www.fastcocreate.com/1683067/5-principles-of-convergence-how-to-work-better-at-the-intersection-of-tech-creativity-and-mehttp://www.researchersworld.com/vol3/issue3/vol3_issue3_3/Paper_09.pdfhttps://hbr.org/1983/05/the-globalization-of-markets

Convergence And Communication Strategies

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