Study Global marketing and glocalisation in the Pearson Edexcel A Level Business specification, with the knowledge and exam application needed for accurate mark-scheme responses.
Source for use with Extract E Becoming a global brand with local tastes The challenge for many brands is finding the right balance between maintaining global standards of quality and presentation, while still retaining the flexibility to adapt to local preferences. Finding this balance will be especially important for many global brands. For some products the objective maybet, to educate the consumer and the world into same in India as they do in Iceland. However, when it comes to food every home has a preference. Häagen-Dazs started as a simple ice-cream delivery business in New York in 1961 with only three flavours, chocolate, vanilla and coffee. Since then it has become a global brand, working with many distinct local markets and introducing new flavours and innovative ways of connecting the product with the consumer. For example, green tea ice-cream, which in US and European markets is still a niche product, is consistently among its most popular flavours in Asian markets. In Singapore and Malaysia, on account of the climate, there has always been strong ligheetsher flavours and refreshing sorbets and Häagen-Dazs' product mix
Indicative content guidance
Answers must be credited by using the level descriptors (below) in line with the
general marking guidance. The indicative content below exemplifies some of
the points that candidates may make but this does not imply that any of these
must be included. Other relevant points must also be credited.
Knowledge, Application, Analysis, Evaluation - indicative content
- A global brand is recognised across several different countries and
continents
- A local approach means adapting some part of the marketing mix to cater
for local differences in taste/culture
- McDonald's and Starbucks adapt their menus to suit local tastes such as no
beef in India and the McAloo Tikki burger. Kit-Kat alters the flavours and
type of chocolate to suit different markets
- Taking local preferences into account means that many potential sales
may be gained as the product/marketing is more likely to appeal to local
tastes
- This is also likely to give a business a competitive advantage over rivals
who may not have followed such a policy
- It may cost more to research and adapt to local tastes but the potential
gains from increased sales may outweigh these extra costs
- For some businesses having the same global business model is simply not
an option such as McDonald's beef burgers cannot be used in India
- However, some products and services are universal and therefore little or
no adaptation to social and cultural differences is needed when trading
internationally - Sony/Apple/Ferrari
- Not having to adapt to local differences when trading internationally saves
time and money in researching and adapting to the demands of individual
markets
- A standardised product gains recognition and becomes known on a global
scale such as Coca-Cola's bottle/red and white lettering
- This builds consumer loyalty and encourages repeat purchases and is a
source of competitive advantage
- Attempting to localise a product may actually damage the brand as
consumers may prefer the 'western brand' or the image that goes with it
- such as fashion brands like Gucci, McCartney
- Nevertheless, by using some local elements, a business can get the best of
both worlds - the power and protection of a global brand such as
Häagen-Dazs and the precise targeting of local tastes to maximise sales
- Much will depend on the product or service and it is more likely that food
eech hore productor will need to be more aware of local preferences than
Level
Mark
Descriptor
0
No rewardable material.
Level 1
1-4
Isolated elements of knowledge and understanding. Weak or no relevant application of business examples.
An argument may be attempted, but will be generic and fail to connect cause(s) and/or consequence(s)/effect(s).
Level 2
5-8
Elements of knowledge and understanding, which are applied to the business example.
Arguments and chains of reasoning are presented but connections between cause(s) and/or consequence(s)/effect(s) are incomplete. Attempts to address the question.
A comparison or judgement may be attempted but it will not successfully show an awareness of the key features of business behaviour or business situation.
Level 3
9-14
Accurate and thorough knowledge and understanding, supported throughout by relevant and effective use of the business behaviour/context.
Uses developed chains of reasoning, so that cause(s) and/or consequence(s)/effect(s) are complete, showing an understanding of the question. Arguments are well developed.
Quantitative and/or qualitative information is introduced in an attempt to support judgements, a partial awareness of the validity and/or significance of competing arguments and may lead to a conclusion.
Level 4
15-20
Accurate and thorough knowledge and understanding, supported throughout by relevant and effective use of the business behaviour/context.
Uses well-developed and logical, coherent chains of reasoning, showing a range of cause(s) and/or effect(s). Arguments are fully developed.
Quantitative and/or qualitative information is/are used well to support judgements. A full awareness of the validity and significance of competing arguments/factors, leading to balanced comparisons, judgements and an effective conclusion that proposes a solution and/or recommendation(s).