Obstacles to standardization in international marketing strategies Essay Example

unit measurements, and other local peculiarities such as tastes, values, and traditions. Variation in technology standards necessitates adjustments in product ranges. For instance, a UK-based TV retailer selling in France must account for the Secam system used there, whereas Pal system sets are unsuitable. Moreover, retailers selling furniture must adjust to local preferences; for example, bed sizes in Germany are typically longer than those in France. Finally, national health and safety regulations regulate what businesses can sell in different countries, such as variations in beef products sold in the US and France.

When retailers try to export an unchanged product formula, they often face challenges, as many international retailers have experienced. For example, Marks and Spencer's attempts to succeed in the Canadian market were hindered by its failure to understand that Canadian consumers did not find the St Michael image and product as appealing as British consumers did. Even when consumer goods are standardized, it is crucial for retailers to be mindful of the varying quantities of different sizes, colors, and other aspects in each country.

Thanks to advertising, luxury consumer goods have become standardized and sold worldwide. This means that a Hermes scarf purchased in London will be identical to one bought in Paris, Milan or New York since customers buy a particular value that surpasses national boundaries and preferences. Levitt (1983) cites Pond's Cold Cream, Coca Cola, and Colgate toothpaste as evidence of a universal product and marketing strategy for consumer goods that can achieve international success. However, these products share similar traits, such as universal brand-name recognition (usually attained through immense financial expenditures), minimal product knowledge requirements for consumer use, and effective merchandising

that has low information content. Nonetheless, a successful universal approach for consumer goods is not typical but instead an exception. Despite the high profile of international brands, the markets they serve are not as globalized as they may seem; for instance, international retailers must comply with foreign regulations that reject many products from being sold in domestic markets.

Aldi, the German discount food retailer, and Toys "R" Us from the USA have made a significant impact on the UK market in recent years. Both retailers have introduced new approaches to presenting familiar products to British consumers. For example, Toys "R" Us has emerged as a legitimate threat to local competitors. A manufacturer may prefer to produce a single standardized product for all worldwide markets, such as Coca-Cola. In doing so, they can profit from economies of scale. However, retailers may be required to sell a variety of products tailored to different specifications for each foreign market. Consequently, retailers cannot exploit the advantages of supplying uniform items across their retail stores around the world.

Depending on the sector in which they operate, retailers overseas may have different experiences. Toys "R" Us employs successful US marketing strategies globally, assuming that children have similar interests everywhere. When it comes to fast-moving consumer goods like personal care items, there are often strict health and safety regulations that require adjustments to fit national preferences. However, the Body Shop's commitment to environmentally-friendly practices and the rising global awareness of product ingredients have aided its expansion. The company's products are perceived as universal since they are natural and not tested on animals. This differs from retailers like Marks and Spencer and Storehouse

who lack a specific international appeal. As a result, the Body Shop can sell its naturally-based skin and hair care products in all its overseas markets without modification.

The Body Shop targets the environmentally and ecologically conscious international consumer in a highly-focused niche market. Compared with other retailers supplying mixed goods, cultural impact is significantly reduced. Therefore, businesses of all sectors must fully understand foreign markets and their habits to undertake overseas expansion, especially in retailing where catering to a multitude of needs and tastes is essential. Retailers expanding abroad must have chameleon-like characteristics to blend in with local customs and be fully accepted.

During the 1980s, many retailers rushed to expand internationally, but their market entry and development strategies were often ill-suited for their organization and the foreign markets they targeted. Whether these retailers continued with their internationalization efforts without modifications or made adjustments along the way, their experiences in foreign markets made it clear that culture plays a critical role and that selecting an appropriate entry method is essential. Retailers face a host of unfamiliar internal and external obstacles when operating overseas, including adhering to accepted norms that affect the type of products they can offer and how they can present them to foreign audiences.

Comprehending the nuances of foreign markets is vital in international retailing, given the absence of identical characteristics between countries. Retailers must develop an in-depth understanding of the impact and consequences of local cultures on their global ventures. Culture plays a pivotal role in shaping the behaviour, preferences, values and laws of nations. To decipher the idiosyncrasies of offshore markets, a meticulous cultural appraisal is imperative for retailers.

Understanding cultural subtleties is crucial

to foreign market strategies, as it influences the success of overseas retailing ventures. Retailers must conform to the social norms and values of each country entered, or risk complications arising from inappropriate strategies. Failure to satisfy local regulations and consumer tastes can cause alienation from both customers and local authorities. Culture is therefore a pervasive factor that should govern all aspects of foreign market strategies.

Conducting a thorough cultural assessment is essential when introducing a new retail concept or establishment in foreign markets. Cultural differences can pose a significant challenge for experienced retailers, as a successful retail formula in one country may not be well-received in another country, even if they share a common language or heritage. Due to the ever-changing social norms and values, culture is a major barrier for retailers entering foreign markets. Failing to accurately assess cultural nuances can result in catastrophic consequences for international retailers. (Reference 1: Anderson E J and Coughlan A T (1987) “International Market Entry and Expansion via Independent or Integrated Channels of Distribution” Journal of Marketing, Vol 51, January: pp 71-82)

Buzzell and Quelch (1990) wrote about "International Marketing Management" and Clutterbuck's article on "Breaking through the Culture Barrier" was published in International Management in 1980. Corder's book "Introducing Applied Linguistics" was published in London by Penguin in 1989. The Economist released a "European Retailing - Business Report" in May of 1999. Euromonitor's "Hong Kong" World Economics Fact book was issued in 1997. Finally, Herkovits' "Cultural Dynamics" was published in New York by Random House in 1970.

Hofstede G (1980) Culture’s Consequences “International Differences in Work Related Values” Sage, Beverley Hills, CA 7. Katsikeas C S and Piercy

N F (1991) “The Relationship between Exporters from a Developing Country and Importers Based in a Developed Country : Conflict Considerations” European Journal of Marketing Vol 25, No. 1: pp6-25 8. Kale S H and McIntyre P (1991) “Distribution Channel Relationships in Diverse Cultures” International Marketing Review Vol 8, No.

3: pp31-45 9. In her article “Border Crossing,” published in Retail Week on January 1994, Larcombe discusses the impact of globalization on retail markets. Levitt’s Harvard Business Review article from May-June 1983, titled “The Globalization of Markets,” further examines this phenomenon. Additionally, Linquist and Persson’s study on Shopping Trips as Social Events, presented at the 7th EIRASS Conference on Retailing and Service Science in Sintra, Portugal on July is also relevant to the topic at hand.

O’Grady S and Lane H W (1992) conducted a study titled “Culture: an Unnoticed Barrier to Canadian Retail Performance in the United States” at the Academy of International Business Conference in November 1992 held in Brussels (13). Another study titled “Directional Growth by European Retailers” was conducted by Robinson T M and Clarke-Hill C M in 1999 and published in the International Journal of Retailing and Distribution, Vol 18, No5 (14). Shiro T and Skolnik A M also conducted research on the impact of Europe 1992 on the retail sector and published it in the May-June issue of Retail Control in 1996 (15).

The following references are cited: Shoham A, Rose G M and Kropp F (1997) in the Journal of Global Marketing Vol 11, No. 2: pp5-27; Stone G (1962) in Glencoe, Illinois; Usenier J-C (2000) in FT/Prentice Hall, 3rd Edition; and Whitehead M (1991).