MGT602 Entrepreneurship Assignment 2 Solution Spring 2014




Learning objective:

Students will be able to understand the Marketing mix considerations in relation to different countries.

Learning outcomes:

 Students will be able to learn that how religious and cultural aspects are important for management. It will enable the students to realize how gathering International Information is helpful while designing various strategies.


 International business is becoming increasingly important to more and more entrepreneurs and to their country’s economy. It offers many growth perspectives. A famous fast food chain “Zest” is operating in USA, UK Pakistan, India, Japan, and Saudi Arabia. The management of “Zest” is focusing on cost reduction. As it is expanding fast in different countries so its management and controlling costs are increasing. One of the intrapreneur, Mr. Fred, came up with the idea of standardizing the marketing program (standardized product and communication strategy). He believes that the worldwide market place has now become homogenized and consumer’s need and wants and expectations are almost similar as they are dealing in the fast-food industry. He also highlighted the benefits of using a standardizedmarketing program in all countries of operation. Economies of scale, lower planning and control leading to lower marketing and advertising costs, a consistent international brand and company image and simplification of coordination of marketing activities and decisions are few of the benefits highlighted by Mr.Fred. The management is inclined by the idea proposed by Mr. Fred but they believe that the cultural, religious and social values of the countries in which “Zest” is operating are different. They fear that it might causes some problems using standardized marketing efforts.


1)      What could be the possible problems/ issue that “Zest” would face if it will use the standardized marketing and advertising program?

The issue of international advertising standardization and adaptation has remained unresolved during the last several decades International advertising standardization refers to utilizing the same or similar advertising messages across different countries or areas; international advertising adaptation is defined as using different advertising messages in separate markets (Kotler, 2008). However, there are no absolute international adaptation practices or advertising standardization across boundaries. Academics have gradually recognized the importance of a contingency approach, which argues that the best advertising strategy needs to be carefully determined depending on an analysis of factors inherent in the particular situation or environment at hand ). However, few studies focus on the influence of specific determinants pertaining to the extent of standardization or adaptation of international advertising strategies

2)      Give your suggestions to the management of “Zest” on how to how to use standardized marketing program more effectively in the given circumstances to get maximum benefit from it. Also give one example of a company using standardized product or communication program.

The most important advantages for Standardized products are:
 The homogenization of needs and preferences. Consumers with homogenous needs allow the creation/achievement of global brands. This fact determines the success trading of a country „national culture” on foreign mass market, formed by consumers with similar preferences (e.g. Levi’s blue jeans or hair shampoo head& Shoulder)
 The intensification of consumers’  mobility. As a result of international travel, in business scope or holidays, there are traded more and more products to a global scale (e.g. all over the world, the passengers/travellers expect that Marriot Hotels to offer products and services with similar characteristics.
 The attainability of scale or experience economies. To gain cost advantages is essential for the success of the global performing. Savings are the results of rebate offered for big quantity of acquisition and from a balanced distribution of resources, on different markets, for research and development, marketing, production and management. Using a standard strategy on the global level or using unique marketing programmes, the cost can be reduced even more; this fact allows the companies to offer better and surer products at lower prices.
 The rising of technological feasibility. In those productive sectors in which the technological process become more and more homogenous, the production’s standardization represents a prior requirement. For simple technologies, the product’s standardization could maintain the costs to a low level. That’s explain why the taste of Coke drink made by Coca Cola company, is the same, no matter which sales market would be. Other companies, such as Nestlé adapt products lines and publicity to markets conditions of every sales market, from a country to another, dealing with upper costs, hopping to obtain better share market and income/profits. This strategy is motivated by the differences between global markets.

 Diversity. The adaptation of enterprises’ world tenders to specific markets is derived from certain differences. This differences are those between consumers’ preferences, needs, perceptions and attitudes, the destination and utilization conditions of products, the income level, the buying power and consumers’ habits, the legislation and national adjustments, competition, the information means etc. Enterprises should adapt their products and services in order to fit to the local tastes and preferences . Even the biggest producer companies on the market adopt a partial standardization for their products. Meanwhile Coca Cola adopts a standardized global brand; the company does some product’s modifications for certain market segments, such as: diet Cola-Cola or decaffeinated Coca-Cola, modifying sugar contents proper to various consumers; necessities and certain regions. Also, McDonalds modifies the menu in different countries in order to adapt to local specific/86/.