The Glocal Strategy Og Global Brands Essay

3218 Words Feb 19th, 2015 13 Pages
Studies in Business and Economics

THE GLOCAL STRATEGY OF GLOBAL BRANDS

DUMITRESCU Luigi Lucian Blaga University of Sibiu, Romania VINEREAN Simona Lucian Blaga University of Sibiu, Romania

Abstract: A few years ago, globalization was the new paradigm in international business, however from a branding perspective it has lost its initial efficiency giving the fact that consumers do not seem to feel a connection anymore with the standardized products of global corporations, catered to them in mass marketing communication programs. With their centralized decision making, most companies simply stopped having a connection with the new global marketplace and neglected its emergence. Hence, the influence of local characteristics arose, and
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“Everywhere everything gets more and more like everything else as the world’s preference structure

Studies in Business and Economics - 147 -

Studies in Business and Economics is relentlessly homogenized”. In his article, Levitt used a lot of examples that represent the definition of globalization like Coca Cola, Pepsi, McDonald’s; and that made the article even more credible. Indeed, the term globalization was first coined by Levitt in the article stated above, and gained a lot of ground in the economic environment. Although Levitt did not explicitly discuss branding, managers interpreted his ideas to mean that transnational companies should standardize products, packaging, and communication to achieve a least-common-denominator positioning that would be effective across cultures (Holt, Quelch, Taylor, 2004). But even though for a while selling standardized products and services was a good strategy, the world evolved and customers stopped feeling a connection with the generic products and communications. And now, even the products that were synonyms with ‘globalization’ took a different approach. For instance, Coca-Cola, the firm often portrayed as the exemplar of the standardized product, has found that it is increasingly standardized strategy had run its course.

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