MID- ASSIGNMENT

UNIVERSITY OF NORTHAMPTON FOREIGN TRADE UNIVERSITY

SCHOOL OF BUSINESS HO CHI MINH CITY CAMPUS
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Module: Global Marketing

Code: MKT3040-PFH-P1
ASSIGNMENT 1

Student: Lâm PhanHo

Ngọc
ChiQuỳnh FOR EXAMINERS
Minh City, November 2024 ONLY

Student ID: 24833336 Grade (in number):

Cohort: Global Marketing ………………..

Semester: I Grade (in words):

Academic year: 2024-2025 ………………..

Headteacher: Examiner 1

Submission date: 12/11/202 (Signature & Full Name)……..

Student’s signature:……… Examiner 2

(Signature & Full Name)

STATEMENT OF AUTHORSHIP

Except where reference is made in the text of the end module Assignment, this
assignment contains no material published elsewhere or extracted in a whole or
in part from an assignment which I have submitted or qualified for or been
awarded another degree or diploma. No other person’s work has been used
without the acknowledgments in the end-module assignment. This end-module
assignment has not been submitted for the evaluation of any other models or the
award of any degree or diploma in other tertiary institutions.
Table of Contents
I. INTRODUCTION......................................................................................................4
II. PORTFOLIO ENTRY 1.........................................................................................4
2.1. Explain the Glocalization framework....................................................................4
2.2. Benefits of Glocalization.......................................................................................6
2.3. An example from the real business world that demonstrates “Glocalization”......6
III. PORTFOLIO ENTRY 2.........................................................................................7
3.1. Internationalization................................................................................................7
3.2. The trigger of company.........................................................................................7
3.3. The motive that lead the company to internationalization....................................8
IV. PORTFOLIO ENTRY 3.........................................................................................8
4.1. Background of India ............................................................................................9
4.2. India’s market Political risks evaluation...............................................................9
4.3. The Development of Economic Environment of India........................................10
4.4. The Advantages and Disadvantages that a UK company will face when entering
India’s market..................................................................................................................11
V. PORTFOLIO ENTRY 4.......................................................................................12
5.1. Waterfall Approach.............................................................................................13
5.2. Shower Approach................................................................................................14
5.3. Comparision and Evaluation...............................................................................14
VI. CONCLUSION.....................................................................................................15
VII. REFERENCE........................................................................................................15

I. INTRODUCTION
An increasing number of businesses are focusing on international marketing as the
domestic market has become very saturated. In order to demonstrate how these theoretical
precepts might be applied practically in the commercial world, this inquiry aims to
explain and organize the fundamentals of global marketing. There are six distinct parts to
this question. The glocalization concept and its advantages are covered in the main
section, which also includes a case study of a business that has embraced and applied the
glocalization approach. India, one of the countries in the developing BRIC market, will
be evaluated in the next part, after which the benefits and disadvantages of a UK-based
company entering this market will be discussed.The study will then discuss the divergent
viewpoints of profit and growth objectives and perceptive management triggers in the
context of globalization, with a focus on two businesses. The final section will
concentrate on the contrast between the waterfall and shower approach tactics, with
examples to support it.

II. PORTFOLIO ENTRY 1

II.1. Explain the Glocalization framework
According to Matusitz, the term "glocalization" was first used in a Harvard Business
Review article by Japanese academicians in the late 1980s. It is derived from the Japanese
word "dochakuka" and describes the intersection of the local and the global.
Glocalization, as defined by the Macmillan Dictionary, is essentially the act of adapting
globally distributed goods and services to the needs of consumers in various local
marketplaces. The term "glocal" refers to the concept that local factors must be taken
into account when promoting globalization, which is defined as combining the "global"
with the "local." Glocalization emphasizes the connection between local and global
influences, recognizing that both local and worldwide trends have an impact on cultural,
economic, and social phenomena (Robertson, 1995).

Glocalization in marketing and business refers to tailoring goods and services to meet the
tastes and cultural quirks of consumers while maintaining a core sense of global identity
(Kotler, 1997). Businesses can increase their relevance and market acceptance for future
successful international endeavors by comprehending and putting values into practice. In
light of the significance of individualism, the Glocalization model acts as a guide,
providing a supportive backdrop for individuals who are adept at navigating the
pathologies of the globalized society.

II.2. Benefits of Glocalization

Businesses operating in global and diverse international markets can benefit from a
number of strategic and operational advantages offered by the "Think globally, act
locally" approach. It enables a business to strike a balance between the broad goals of
global integration and the adaptability to address the unique requirements of regional
surroundings and customers.

Phillip Kotler highlighted the following benefits of glocalization: "The many levels of
marketing activity are strategic, tactical, and operative balanced; consumers believe that
the brand is relevant to them and is adapted to their particular wants and requirements.
Higher brand equity is correlated with a larger market share. Kotler went on saying that
the business will have the ideal chance to maximize both local and international
marketing by combining global policies and marketing with meeting local expectations
for their goods and services.
This implies that the business can meet the needs of local clients and help the product
blend in with the local way of life by localizing those products. This will lead consumers
to believe that the product is specifically designed for their nation and culture. When a
customer is happy, they will most likely return to purchase goods from that business.

II.3. An example from the real business world that demonstrates

“Glocalization”
The glocalization framework appears to be a successful trend for businesses looking to
expand their product offerings internationally. Numerous multinational firms, including
Coca-Cola, Starbucks, Nike, and McDonald's, exhibit glocalization trends (Roudometof,
2016). The example of McDonald’s below can give you with more apparent perspective
of receiving benefits from using “Glocalization framework”.

Due to India's varied cultural, religious, and culinary tastes, McDonald's faced particular
difficulties when it first entered the Indian market in 1996. In addition to developing the
McKurry Pan, McAloo Tikki, and Maharaja Mac (a chicken variant of the Big Mac) and
establishing distinct vegetarian and non-vegetarian areas, McDonald's fully banned beef
and pork products due to religious concerns. Notably, they opened the world's first
restaurants that served solely vegetarian food.

According to Joshi, R. (2021), these were the main tactics that increased overall revenue
from $10 million in 2016 to $1.1 billion in 2019 and increased total sales of McAloo
Tikki accounts by 25%. "McDonald's India: The Journey of Localization." Case Study,
Harvard Business Review. McDonald's success in India serves as an example of how
successful globalization may transform possible obstacles in the market into advantages.
III. PORTFOLIO ENTRY 2
III.1. Internationalization

Since the global economy has grown over time, several definitions of internationalization
may be found in a wide range of publications and articles, from scholarly to commercial.
According to Johanson and Vahlne (2009), "Internationalization is a process of increasing
involvement in international operations, characterized by gradual acquisition, integration,
and use of knowledge about foreign markets and operations, and incrementally increasing
engagement to foreign markets."

When a company expands its production, sales, R&D, and other business operations into
other markets, it is said to be internationalizing. Many larger companies may experience
internationalization in a reasonable continuous manner, implementing several
internationalization phases on multiple overseas expansion initiatives concurrently, in
small steps, over time. However, internationalization is often a somewhat discrete process
for small and medium-sized enterprises (SMEs); that is, management views each
internationalization endeavor as unique and separate.

III.2. The trigger of company

Trigger: Specific internal event

One significant catalyst for Samsung Electronics' global expansion was the Asian
financial crisis of 1997. The economic crisis had a serious effect on the Korean economy,
resulting in a sharp decline in the value of the Korean won and a significant contraction
of the domestic market ( Lee & Slater, 2007, p. 352). According to Kim's (1997) thorough
analysis of Korean businesses, Samsung had a significant turning point during this time
when its domestic sales fell by 40%. In order to survive and expand, Samsung was
compelled by the crisis to explore outside of its own market. As a result of this catalyst,
Samsung changed its strategy, foreign boosting direct investment and setting up new
production plants in developing nations like Vietnam and India (Samsung Electronics
Annual Report, 2000).
III.3. The motive that lead the company to internationalization

Motive: Domestic market: small and saturated

Samsung's internationalization was primarily motivated by market seeking, or more

specifically, the need to get beyond barriers in the domestic market. With a population of
roughly 48 million, Samsung believes that the Korean market was too small to enable
economies of scale, which were essential for obtaining a competitive edge in the global
electronics sector.Since Samsung methodically targeted larger markets like China,
Europe, and North America in the late 1990s and early 2000s, this market-seeking
incentive is clearly seen in the company's strategic decisions. According to corporate data
from the 2022 Annual Report, Samsung's overseas sales have increased from just 30% in
1990 to over 85% in 2022, mainly due to its market growth strategy. In reality, Samsung's
rapid growth is what has propelled it from a minor regional player to one of the top
electronics corporations.

IV. PORTFOLIO ENTRY 3

Execute Summary: This segment looks at the market for international mergers and
acquisitions of Asian rising economies, with a focus on India. To give a thorough grasp of
India's history, political hazards, and economic climate, this section compares the Indian
market's performance to that of the BRIC economies (Brazil, Russia, and China).

IV.1. Background of India

One of the world's most dynamic and complicated nations, India occupies a significant
geographic location, is home to 1.44 billion people from a variety of religious and
cultural backgrounds, and spans 3.29 million km². With a democratic republic made up of
28 states and a GDP of $3.73 trillion by 2023, India will rank fifth globally in terms of
economic size (World Bank, 2023). India has seen rapid expansion in the telecom sector.
It is the second largest telecommunications sector globally, with 1.8 million subscribers.
The telecom sector has seen significant technological and structural transformation in
recent years. 4G spectrum has altered consumers' motivations and perceptions..

IV.2. India’s market Political risks evaluation

Constraints of Foreign Direct Investment: FDI has played a crucial role in shaping the
financial growth and infrastructure in the recent years in the telecommunications sector.
In the financial year 2018–2019, FDI reached US$2.67 million. In 2019, FDI inflows
reduced. One of the reasons for less foreign direct investment can be because of less
number of telecom companies due to the case of mergers. The lack of a congenial
operating environment and uncertainly over the telecom laws were other reasons.

In the paper, "Indian Telecommunications Policy and Regulation, Kathuria (2023) says
that there have been relentless changes in policy regarding the spectrum allocation,
license terms, and other operational issues in the sector for the last decade. The (TRAI)
changes the rules with regular frequency, and this influences investment decisions and
business planning

Government Control: The Journal of Indian Business Research, 2023 reports the
following areas of critical government action: Guidelines on spectrum auctions, sharing
of infrastructure, service price limits, quality of service standards. Most of these
regulations have been developed without adequate consultation with the industry,
enhancing the operational risks of operators.
4.3. The Development of Economic Environment of India

India has been in the process of a substantial economic transformation, especially after
the liberalization reform in 1991. India now stands as one of the major global economic
powers, with more than 1.4 billion people and a rich cultural legacy. Taking this 7.6%
growth, the GDP of the economy has grown from about $270 billion in 1991 to $3.55
trillion in 2023, placing it up as the fifth largest economy, leaving behind the US, China,
and Germany. As per the International Monetary Fund, FDI inflows have grown greatly,
from $237 million in 1990-1991 to over $84.8 billion for FY 2021-2022, and there is a
huge decline in poverty in the same period.

4.4. The Advantages and Disadvantages that a UK company will face when
entering India’s market
Advantages:

The Market has a gigantic size and scope with the 1.43 billion people in the world being a
huge potential market with a huge consumer base. India has also emerged as the leading
destination for Global Capability Centers of UK firms due to the various efforts which
have been implemented by the government in the improvement of infrastructure. It is
estimated that by 2050, there will be approximately 250 million middle-class Indians,
resulting in improved spending power and increased demand for high-quality goods and
services. It further cemented India's position as the second-biggest source of foreign
direct investment after the US, with investments in 118 projects in India creating 8,384
new jobs in the UK, the Department for Business and Trade said.

India's strategic geographic location acts as an entry point for other emerging Asian
markets. The presence could prove to be an opportunity to be utilized for expansion
within the UK and also globally. The government of India, through business-friendly
reforms such as the 'Make in India' initiative, and a single indirect tax regime like GST,
has smoothed ways of doing business in India, turning it into an attractive destination for
foreign investments.

Disadvantages:

The "ease of doing business", "regulations and exchange controls", and "infrastructure"
have been highlighted as the main barriers for UK companies regarding entering India.
Challenges abound that have to be overcome; due care and attention have to be made to
ensure that compliance is observed in relation to the regulatory regime in India-and its
attendant bureaucracy-to ensure proper negotiation; the cultural differences will have to
be handled sensitively while constraints in the infrastructure in certain parts may
undermine logistics efficiency.
V. PORTFOLIO ENTRY 4

Execute summary

Expansion Strategies Do summary The selection of the expansion strategy follows the
phase of market selection in the internationalization process of an enterprise. It is believed
that while developing an expansion strategy for international markets, a company needs
to take two critical decisions. One relates to the number of foreign markets the company
wants to enter; the other relates to the time period for internationalization. The firms must
decide either on incremental or on simultaneous entry as a function of a timing dimension
at the second stage. These strategies have been labeled as the "waterfall" approach and
the "shower" strategy by Kalish et al., 1995.

V.1. Waterfall Approach

Waterfall approach, on the other hand, may be better referred to as the sequential entry,
where a firm enters new markets in stages: first to the most developed or appealing and
then down the line to the less developed. It is a sequence in which businesses allow
themselves to solidify a position in the market and get firsthand expertise before
expanding.
For example: Starbucks has been pursuing a strategic waterfall approach to global growth
since 1971. Its first big overseas thrust was to Japan in 1990 and the United Kingdom in
1998, both of which were developed markets. Though it began its foray into developing
markets in the early 2000s, entering China in 1999 and parts of the Middle East and Latin
America in 2000 and 2002, respectively, it waited until 2012 to make its move into India
and another year later into Vietnam.

=> Starbucks expanded internationally in waves and with a deliberate approach, yet
always adapted its business plan to the peculiar demands of the new markets. The first
wave of expansion focused on steady growth via company-operated stores within North
America and Europe. Adaptive joint ventures and strategic local partnerships are
increasingly the natural consequence of entry into steadily more complex Asian markets.

5.2. Shower Approach

The Sprinkler strategy is one of the many names of the Shower technique. Talking about
the entry timing, this is one of the strategies that works for most of the nations regardless
of their concrete stages of development. It approximately takes the same time to introduce
goods or services in the foreign markets. Therefore, the companies that use this method
can quickly gain the international customers as well as an edge over pioneers.

For example, Netflix made its service available in 130 countries in a single launch in
January 2016, growing the number of countries where it offers service from 60 to 190
overnight. "To ensure a high-quality streaming experience everywhere, Netflix invested
heavily in global server networks and built out its streaming infrastructure and content
delivery network called Open Connect.

=> By preventing the first mover advantages of competitors in establishing leads within
emerging markets, Netflix has rapidly marked its presence on a global scale. However,
multiple market entries are far riskier and resource-intensive to operate.
5.3. Comparision and Evaluation

This waterfall strategy helps companies, prior to attempting more difficult markets, build
brand equity and refine their business The risk here is the potential loss of first mover
advantage, and the pace at which overseas markets are entered can be slow. On the other
hand, the Shower approach allows companies like Netflix to cover most international
markets with speed and achieve first. to-market status in a large number of territories. It
requires a significant amount of upfront investment, extensive and complex global
infrastructure, and the capacity to concurrently manage high levels of market complexity.

=> All of these methodologies are selected based on the competitive environment, nature
of industry and product, stage of the product lifecycle, and resources within the
corporation. Traditional retail and consumer products companies utilize the waterfall
approach as it is more controlled; Whereas technology and digital service companies will
always choose the shower methodology due to the scalability of these businesses.

VI. CONCLUSION

In conclusion, it can be said here that global marketing is spreading more rapidly than
ever before. Due to this phenomenon, various companies are now fighting in a stronger
manner in order to promote and advertise their respective brands globally. These
companies have definitely gained enormously due to this trend. Glocalization therefore
must focus on forming and implementing proper enterprise development plans and
strategies.
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