¶ … regionalize or globalize product development? Would global products and brands really lower the costs of local introduction? What was the financial leverage for developing such products?
Diversity in local tastes and preferences has urged many multinationals to develop products that cater to local tastes. But Unilever Butter beater case indicates that this is not entirely a good strategy because there are such massive differences in each market that the development and advertising cost alone can eat up the profits for the local company in the first year of launch. Hence it is much better to develop a product which is a strong global brand and allow people to "love it or leave it."
But for a brand to be truly globalized and work in each market, it must remove visible cultural associations. This is important and can be seen through such strong brands as Levi's jeans, Sony's Walkman, and Pepsi or Coke. These brands do not evoke precise cultural or ethnic association and hence they work well in each market they try to capture. For example strong Japanese brands are not marketed "on the back of a Japanese way of life" (Featherstone 1995, p. 9).
This gives each country the freedom to decide if...
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