Going Global what works

and what doesn’t

GIMW, Delhi

14 June 2014Amit Sinha Roy

Global trade versus GlobalizationThe subtle differences

It is about the business entity and it’s global presence

• Global trade, also known as international trade, is simply the exchange of goods and services across international boundaries. Global trade involves the export and import of goods and services between international borders

• Globalization is the impact of integration of international markets leading to what is popularly termed as the “flattening of the world” leading to creation of new markets as well as new competitive pressures

• Globalization is fueled by advances in communications technologies and transportation

So what is Globalization?

Globalization (or globalisation) is the process of international integration arising from the interchange of world views, products, ideas, and other aspects of culture

Advances in transportation and telecommunications infrastructure, including the rise of the telegraph and its posterity the Internet, are major factors in globalization, generating further interdependence of economic and cultural activities

Source: Wikipedia

The role of communications (internet) in Globalization

“The Internet will create the winner and bury the laggards” - Philip Kotler

Source: Intel

Key drivers for going GlobalDriving growth

Availability of Natural resources / Raw materials

Value addition – manufacturing, design, finishing

Economies of scale - specialization

Balancing of Demand / Supply

Specific skill sets

Government regulations, SOPs – e.g. pollution

Potential barriers to going GlobalCompetition

Tariffs

Subsidies

Regulations, Laws

Language

Climate

Resources

Advantages of going GlobalFor businesses and consumers

Access to new markets

Achieving volume – economies of scale

Lowering production costs

Global product & service availability

Potentially better quality products & services

Development of Nations & Goodwill

Dealing with natural calamities – famine, draught

Ability to earn Foreign exchange

Disadvantages of going GlobalThe underbelly

Monopolistic behavior

Competition for smaller local businesses

Uneven wealth distribution

Unemployment in certain areas

Economic depression in a particular area leading to instability

Loss of local culture

Environment impact – polluting industries

Spread of diseases – human and agricultural

Switching gears - to the Global marketing context

Source: Philip Kotler, Marketing Management

“We are living in a world that is no longer facing a shortage of goods but a shortage of customers”

"The most important thing is to forecast where customers are moving and be in front of them.“

Key elements to becoming a successful global marketer

“Being a successful global marketer means more than just translating content”

• Target audience

• Groups and forums

• Social networks and endorsements

• User generated content

• Optimize for mobile

• Well targeted campaigns

• Language

• Time of day

• Video

• Discounts & contests

• Frequency

Source: Hubspot

Glocalization – success stories abound

Glocalization = Global advantages, local relevance: Think Global & Act Local

• Airbnb – localized application

• Coca cola – CSR – support my school

• Expedia – localized holiday destinations

• McDonalds – local food sentiments

• Pepsi – localization of food

• TCS – b2b success model

• WWF – World Earth Hour

Think Global, Act Glocal— Distributed Marketing Model

Can your brand assets be leveraged globally?

Can services be reused across regions?

How many global agency partners do you have?

How many do you need?

How complex is your channel ecosystem?

What channels do you use in specific countries?

Can you leverage assets across channels?

What are the regulatory considerations you face in the various countries in which you operate?

Source: TCS blogs

Distributed marketing model

Distributed Marketing Control provides organizations with:

• A global framework and governance charter that is usable across all of their regions

• The ability to plan global strategies and maturity models and implement locally

• A global platform that is extensible to regions

• Production capability that is able to deliver services to all regions in a uniform fashion

• The ability to re-use assets and services

• The ability to report metrics–campaign ROI, deep customer insights based on analysis of structured and unstructured data, demand forecasts, and more–both globally and by region

Source: TCS blogs

Questions?

Thank youtwitter: @avsroy