Glocalization

IIPM Knowledge Centre Glocalization has been a savior for many companies chasing diverse markets. Though it cannot be a universally applicable concept; this article looks into few examples of how companies leveraged glocalization to work wonders; by Amim Ahmed and Mahohar G

Liberalization and the dawn of Digital Marketing compelled conglomerates aspiring universal leadership to conceive radical strategic facets in their marketing practices and philosophies. The buzz “GO GLOBAL” was phenomenal, and thereby its impulse, that many marketers overlooked the eminence of the basic law that: “though the products are global, the markets are local.” The dynamic process of globalization forced the imprudent to recoil and scripted success for the innovators, the ones that made the best & most are the ones which became glocal.

Glocalization is a strategic route adopted by organizations determined to lead and conquer markets beyond their cultural and geographical boundaries. Organizations that have managed to efficiently align and synergize their core global vision vis-à-vis their cross border market specific visions and mission have achieved leadership not just locally but globally. The best example one could cite for Glocalization is that of Mc Donald, which had stood all the challenges, yet managed to stick to its globally standardized menu, but see how they did sell local?

The loudest glocal communication of all was done by HSBC: “The World’s Local Bank”. They say that it defines the distinct personality of the brand. It took HSBC a worldwide research to understand that though people value international products and services, they question the global model, and buy products that relate to them as an individual in their “bound rationality”.

“A Brand that stands for nothing, can fall for anything” has been an effective mantra, for which brands have been aggressive enough to capture mind space of their respective targeted customers. But, the impact of Glocalization is so much that even positioning is also going the glocal way. Look into the recent past advertisements of Coca Cola, yes, it’s less of ‘Coca Cola Enjoy’, but Thanda Matlab Coca Cola, which has been shot with Aamir Khan, posing in different cultures, as a Hyderabadi, Punjabi, Lucknowi, Bombay-Bhai and as a Gorkha as well.

Many in the list of failures show how multinational and global products have failed in local or domestic markets. Observers sigh at the causes, and neo-professionals ridicule at the reasons. Why? The reasons are very elementary. The marketer, when going global, must make a pitch and test its validity and relevance in every locality of the domain. Going global might not take much effort. But, going glocal means a lot of responsibility.