The debate around standardization versus adaptation in international marketing consists since nearly half a decade now. The first articles regarding the question whether firms should adapt their strategy and marketing program to the local costumers needs or if they rather should focus on global standardization were published in the 1960’s (e.g. Bartels, 1968; Buzell, 1968; Elinder, 1961/1965; Keegan, 1969). Since then over 300 articles address this research question and it is a never- ending debate with inconsistent findings. A recent detailed meta-study over relevant articles of the last 50 years leads to contradictory findings: Out of 274 articles published in Marketing and Management Journals, 8% recommended global standardization, 14 % favored adaption, 10 % could not give a recommendation and the majority (68%) stated that companies have to make their decision grounded on the specific situation they are in (Schmid & Kotulla, 2010). These contradictory findings in the literature alone show, that the statement “Standardization in International Marketing strategy is doomed to failure” cannot be easily agreed with.
This essay has the purpose to disprove the statement and demonstrate, with the help of previous literature and practical examples, that in certain contexts and for some companies, standardization can be a successful strategy. Chapter 2 provides an overview of the debate standardization versus adaptation and the empirical results of a choice of articles. Chapter 3 explains which aspects of the marketing mix will be observed and clarifies the definition of standardization. Following in Chapter 4 two companies within the consumer goods will be presented, who clearly follow an international standardization marketing approach. A conclusion will be provided in Chapter 5, integrating a final valuation of the discussed statement.
Table of Contents
1. Introduction
2. Literature Review
2.1 Theoretically Arguments
2.2 Empirically support for standardization
3. Measurement of standardization
4. Standardization of Consumer Goods – Jägermeister & Nixon
4.1 Non-Durable Goods - Jägermeister
4.2 Durable Goods - Nixon
5. Conclusion
Objectives and Core Topics
This essay aims to evaluate the ongoing debate regarding standardization versus adaptation in international marketing strategies. Specifically, it seeks to challenge the assertion that standardization in international marketing is doomed to failure by examining empirical evidence and practical industry examples.
- Theoretical overview of the standardization versus adaptation debate
- Empirical analysis of factors influencing marketing strategy decisions
- Defining measurement criteria for marketing standardization
- Case study of standardization in the non-durable goods industry (Jägermeister)
- Case study of standardization in the durable goods industry (Nixon)
Excerpt from the Book
4.1 Non-Durable Goods - Jägermeister
Jägermeister is an herbal liqueur produced and distributed worldwide by the Mast Jägermeister AG from Wolfenbüttel in Germany. The company was founded in 1878 as a wine wholesale business and vinegar factory. In 1935, the founder’s son Curt Mast, “developed a recipe for the Jägermeister herbal liqueur in 1934 and introduced the product into the market in 1935. At the same time he copyrighted the name ‘Jägermeister’, and the ‘Hubertus stag head’ as an official trademark.”(Mast Jägermeister AG, 2010a).
In 2009, the company sold 82.4 million 0.7-liter bottles in over 80 countries worldwide (Infodienst.de, 2010). The turnover in 2009 was approx. 400 million Euros, with more than 75 per cent of sales accredited to the export (Menschner, 2010). Additionally, according to the Impact International Ranking, Jägermeister ranks 9th out of world 100 premium spirits (Mast-Jägermeister AG, 2010b), and is therefore the most successful herbal liqueur in the world.
Chapter Summaries
1. Introduction: Outlines the historical debate on global standardization versus local adaptation and states the essay's goal to disprove the idea that standardization is inherently unsuccessful.
2. Literature Review: Provides a theoretical and empirical overview, concluding that the choice between standardization and adaptation is situational and a matter of degree.
3. Measurement of standardization: Establishes a framework for categorizing marketing strategies based on international product and promotional consistency, drawing on prior research.
4. Standardization of Consumer Goods – Jägermeister & Nixon: Presents two practical cases to demonstrate that successful international standardization is achievable in both non-durable and durable consumer goods.
5. Conclusion: Summarizes the findings, reiterating that standardization can be highly successful when implemented as a strategic, situation-specific approach.
Keywords
International Marketing, Standardization, Adaptation, Marketing Mix, Globalization, Consumer Goods, Jägermeister, Nixon, Brand Strategy, Product Strategy, Promotion, Intermarkets, Competitive Advantage, Export, Multinational Companies
Frequently Asked Questions
What is the primary focus of this essay?
The essay explores the validity of the statement that standardization in international marketing strategies is doomed to failure, arguing instead that it can be a successful approach in specific contexts.
What are the central themes discussed?
The core themes include the trade-off between global standardization and local adaptation, the impact of globalization on consumer behavior, and the strategic implementation of marketing mixes in international markets.
What is the main research question or objective?
The objective is to disprove the absolute rejection of standardization as a strategy by using academic literature and real-world corporate examples to show that it can lead to success.
Which scientific methodology is employed?
The work employs a systematic review of existing academic literature followed by a qualitative case study analysis of two specific brands within the consumer goods industry.
What does the main body of the text address?
The body covers the historical academic debate, the definition of standardization within the marketing mix (product and promotion), and detailed examples of how companies implement these strategies globally.
Which keywords best characterize this work?
Key terms include International Marketing, Standardization, Adaptation, Globalization, and consumer-goods-specific brand management.
How does Jägermeister manage their marketing internationally?
Jägermeister maintains a highly standardized product strategy across global markets while utilizing consistent promotional elements, such as "Jägerettes," to maintain a unified global brand image.
What makes Nixon's strategy an example of standardization for durable goods?
Nixon maintains a uniform brand name, design, and warranty policy across over 40 countries, proving that even in lifestyle-driven durable goods, a standardized product strategy is viable.
Is total standardization possible according to the author?
The author concludes that total, 100% standardization is rarely possible or advisable due to local regulations and cultural nuances; instead, success lies in the appropriate "degree" of standardization.
- Quote paper
- Diplom-Kauffrau / MSc Christina Liessem (Author), 2011, Standardization in International Marketing strategy: doomed to failure or successful strategy?, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/283949
