Managing Brands over Geographic

Boundaries and Market Segments

In current times every company is wanting to be a global player, some companies this out of
compulsion, for some its natural extension, whatever the case companies need to have marketing
programs, which can create and sustain brand equity across geographical boundaries and market
segments. However, before studying the global view for marketing strategies, it is important to
understand regional market segments, profile, etc.
An interesting phenomenon has raised its head in recent time where companies are focusing on
regional markets in an effort to counter globalization. In this regionalization, companies focus on
geographic locations treating them as market segments. For example, Pepsi has created four
regions within USA to focus on individual market segment and designing a marketing program.
The reason why companies are employing a regional approach is that mass markets have to cease
to exist, as diversity in form of culture; demographics, etc. are in the forefront. A typical large US
city has Asian, Hispanic and African American population, there are by creating a need for
marketing programs, which can make products and services reachable to this audience.
The world is becoming flat just no in terms of communication power but also in terms of
migration and movement of labor across the globe. Globalization is here to stay and every
company is in the fray to take advantage of this phenomenon. There could many reasons for
which companies may decide to be a global player. Bigger markets like China and India provide
unending opportunities not only as a market but also as production hubs there by reducing
overall cost for to be global players. Furthermore, by catering to different markets, companies
can reduce the risk as a result of diversification.
It is clear there are many reasons for becoming global player, but there are outright advantages
also for global marketing programs. Looking at the production side, as production increases per
unit cost of the product will decrease, thereby reducing cost of the marketing program. As
standardization increases in packaging, distribution and other marketing activities cost associated
with them would decrease. For example, Sony its marketing campaign has universal appeal
thereby assigning equal cost to products and geographies. Another advantage is that with global
presence and acceptance confidence with consumer reaches altogether a different level. It creates
a sense of pride and ownership looking at the universal demand for the product. With the
uniform marketing program across geographical boundaries, companies can have consistent
brand knowledge, this is especially important for mobile consumers. Furthermore, another
advantage for companies is the ability to sell a good product universally at one go, thereby
gaining a complete first mover advantage.
But with advantages in operating on a global there are also challenges and disadvantages. With
standardization companies are unable to satisfy needs of consumer, which comes with different
culture, demographics, etc., For example, consumption of carbonated drinks and beer is much
more in USA, Australia in comparison to that of India and China. As perception and needs vary

from culture to culture, consumer response to a standard marketing program may not equally
have felt as per company acceptation. Every product undergoes a life cycle which begins from
the day it is launch in the market, so every geographical location may be having different product
life cycle stage, so marketing programs also accordingly have to vary. Other challenge
companies face is that of environmental like social, political and regulatory.
Therefore, a brand to succeed across geographical boundaries companies need to device
marketing programs, which can create global consumer based brand equity. And for that
marketing programs have to highlight point of differences and point of similarities across
boundaries. Furthermore, companies should understand brand building is tedious and time
consuming. Brand name, logos, symbol has to be designed in a way that it properly
communicates brand knowledge and not creates confusion in consumers mind. And at the same
time construct and execute a global brand equity measurement system so that focus always
remains of develop a strong consumer based brand equity.

Mc Glocal? Mc Donalds Global Success

In an increasingly globalized economy, it is a constant challenge for brands to find ways to adapt
themselves across different cultures, languages, ideals and essentially borders throughout the
world.
Many North American brands fail overseas, not being able to adapt to these pressures. Even big
giants such as Wal-Mart have failed in overseas countries such Germany and Korea. It is a skill,
an art and a science to be able to successfully manage a brand across borders and Mc Donalds
has done this remarkably .
The success of their business is undeniable. You can find a Mc Donalds in almost every part of
the world; they operate in over 119 countries in 6 continents worldwide.
What is the reason for Mc Donalds success and how have they been so successful in managing
their brand across all geographic boundaries? Their glocal approach to branding Mc Donalds
thinks global and acts local.
This is seen in many of their product and service offerings throughout the world. A Mc Donalds
in North America versus Europe will have different brand elements that are specifically tailored
to the surrounding culture. For example the Mc Donalds in Europe will most likely serve beer
and may have a Mc Cafe, serving up fancy drinks that youd see in a Starbucks. People in
Europe enjoy having a beer and coffee with friends during the day and Mc Donalds recognizes
this and incorporates it into their European franchises. Also the look of the Mc Donalds is very
different. It is more upscale, classy and spacious with a relaxed atmosphere that positions Mc
Donalds more as a sit down restaurant compared to a quick fast food stop as seen in North
America.

Mc Cafe in Europe
Each element of the Mc Donalds brand is managed locally to make sure that the brand blends
seamlessly into the surrounding culture especially food choices and dining room atmospheres:

India: the Big Mac is called a Maharaja Mac made with lamb patties to accommodate the
significantly high population of Hindus that do not eat beef

Asia: in Asia Mc Donalds has adjusted its menu to include a lot of interesting items
including seaweed seasoned fries, green tea & red bean icecream, filet-o-shrimp, and
many more.

12 Interesting Menu Items from McDonalds in Asia

The Big Mac, the Quarter Pounder with Cheese, Chicken McNuggets for those of us who visit
McDonalds in America, these menu items are all familiar. But overseas, McDonalds has released
a number of foods that cater to local tastes, and many of these items seem kind of
unexpected to many of us in the Western world.
In fact, some of these McDonalds items are even stranger than pizza in an ice cream cone.

1. Green Tea & Red Bean Ice Cream Sundae

Featured on menus in Hong Kong, the Green Tea & Red Bean Ice Cream Sundae is made with
vanilla soft serve, and topped with green tea-flavored syrups and azuki beans, a sweet-tasting
bean that is often used for desserts throughout Asia.

2. Breakfast Bacon Lettuce Egg McWrap

This seems pretty Westernized, with the exception of the lettuce. A similar chicken Caesar wrap
is also available, but only for breakfast.

3. Samurai Pork Burger

The Samurai Pork Burger, featured on the menu in Thailand, features pork instead of a beef
patty. A similar product, the Shogun Burger, is on menus in China.

4. Seaweed Seasoned Fries

These fries are seasoned with seaweed and salt, and you apply the seasoning yourself. Other
seasonings include chargrill and French onion.

5. McRice
Popular in Singapore, the McRice is served between two fried rice patties.

6. Bubur Ayam
Chicken strips in a thick porridge with vegetables and hot peppers.

7. McSpaghetti
No, this item doesnt hail from Italy, its actually on the menu in the Philippines.

8. McHot Dog Mega Sausage

Yup, thats a hot dog. But its only available as part of the breakfast menu!

9. Pies
Breakfast varieties include ham and egg, and bacon and potato. Dessert pies run the gamut from
banana to taro to pineapple.

10. Breakfast Pasta Soup with Egg and Sausage

This breakfast-only item includes veggies, sausage, eggs, and pasta in chicken broth.

11. Double Beef Prosperity Burger

Offered in Malaysia, this is part burger, part French dip sandwich. Each patty is dipped in a spicy
pepper sauce, and topped with onions.

12. Filet-o-Shrimp
This ebi-burger (ebi is Japanese for shrimp) is served with secret sauce. The secrets out,
McDonalds. We know the secret is just Thousand Island dressing.