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Nestles Multidomestic Strategy

Nestles Multidomestic Strategy. Germany. Switz. France. U.S. Nestle 1983 Structure. Marketing Activities. Strategy: Multidomestic vs. Global How standardized or localized should the marketing program be? HQ Influence

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Nestles Multidomestic Strategy

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  1. Nestles Multidomestic Strategy Germany Switz. France U.S.

  2. Nestle 1983 Structure

  3. 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”??

  4. Centralization and Standardization The extent to which activities are the same across national units. Forces? The extent to which activities are differentiated across national units. Forces? Centralized HQ Influence Decentralized Standardized Localized Strategy

  5. Product Names • Coca-Cola in Chinese: “Bite the wax tadpole” • Castlemain XXXX lager in US: “Fourex (condoms)” • Olympia ROTO copiers in Chile: “broken” or “low-class”

  6. 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

  7. Centralization and Standardization The degree to which HQ has decision-making authority. Forces for centralization?? Centralized HQ Influence The degree to which each country has decision-making authority. Forces for de-centralization?? Decentralized Standardized Localized Strategy

  8. Levels of HQ Influence Directing Approving Coordinating Persuading Informing Ignoring

  9. Nestles Marketing Integration Branding Price Packaging Centralized Product Advert. HQ Influence ? Promo. Decentralized Standardized Localized Strategy

  10. Managerial Roles • Product Manager • Strategist, architect, coordinator • Country Manager • Sensor, builder, contributor • Functional Manager • Specialist, cross-pollinator

  11. Nestles’ New Marketing Structure

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