1. Exercise 1 Multidomestic vs. Global Debriefing J.-C. Usunier – International Marketing – October 2011

2. General Outcomes 2011-12 Chosen industries are: tobacco(4), cars(4), airlines(4), beer(3), meat-based food(2), sports shoes(2), portable computers(1), ski(1), toilet tissues(1) According to aggregated ratings, all industries seem to be rather global except beer (above a total of 15 points) Industry Total Mean Sports Shoes26 Portable Computer 26 Toilet Tissues25 Airlines23 Tobacco21 Cars21 Ski Industry19 Meat-based foods 18 Beer14 TobaccoAirlinesCarsBeerMeat- based food Sports Shoes Portable Computers Toilet Tissue Ski 25 24161826 2519 2325201417N/A 19221912 1819

3. General Outcomes (Total) 2010 IndustryTotal Micro Chips30 Automatic Blood Analyzers30 Ski Lifts26 Portable Computer26 IT Services26 Air Transport Services25.5 Cement25 Writing instruments24 Auditing Services24 Ski Industry24 Sport Shoes23 Toilet Tissues22 Tobacco21 Beer21 Airlines - Services19 Higher Education Service17 Mobile Com. Services17 Sheets and Pillows17 Mail Services17 Bottled mineral water17 Pharmaceuticals (prescription)17 Market Research Services17 Life Insurance14 Advertising Service13 Yoghurts13 Meat-based Foods12 Washing Machines11 Betting and Gambling8 Rail Transportation Services6 Motor insurance2 The Micro-Chips and Automatic Blood Analyzers industries have been rated as the most global industries (Total: 30 points) All industries seem to be rather global Your tendency (even stronger in 2011) is to overestimate similarities by much; your assumption: everything is rather undifferentiated “Motor insurance”, “Rail Transport Services” and “Betting and Gambling” industries tend to be viewed as more multi-domestic

4. You find it global because you oversimplify  Important to look at different product types, sizes, tastes, usages, etc.  Consider consumer motivation  Take into account how people consume in local contexts (e.g. sharing food or not)  Think about words in the local language and what they express about local ways of consumption These points have significant consequences for international marketing

5. Global consumers?  Disagreement among groups within same industry  e.g. in airlines industry consumer ratings vary from 8 to 2!  Toilet tissues: “Toilet tissues are widely used all over the world but in different ways. For example, in Muslim countries people use water after toilet”  Tobacco: “The consumer preferences and tastes are mainly similar, with some minor variations (strong tobacco in Japan etc.)”  Meat-based food: “Differences between consumers in the following categories: Culture, Religion, Habits” Again many industries are rated quite high. Students often consider consumers to be very similar all around the world. TobaccoAirline s CarsBeerMeat- based food Sports Shoes Portable Computers Toilet Tissue Ski 887889874 78436N/A 4743 324

6. Global consumers? 2010  There are differences between the ratings of last year and this year especially for ski, sports shoes, and meat-based foods industry. IndustryConsumer Micro Chips10 Automatic Blood Analyzers10 Ski Lifts9 Writing instruments9 Ski Industry8 IT Services8 Air Transp. Services (G. 12)8 Cement8 Portable Computer8 Toilet Tissues8 Mail Services8 Tobacco7 Beer7 Air Transport Services (G1)7 Mobile Com Services7 Sheets and Pillows7 Auditing Services7 Market Research Services7 Pharmaceuticals prescription6 Advertising Service4 Sport Shoes4 Higher Education Service3 Meat-based Foods3 Betting and Gambling3 Washing Machines3 Bottled mineral water2 Yoghurts2 Life Insurance2 Rail Transportation Services2 Motor insurance0

7. Global product/service? Once more,industries are seen as very global in terms of the product/service they offer worldwide. There is generally agreement between groups for a particular industry Meat-Based Foods: “The products have to fit the taste, the culture, the religion and habits of the consumers.” TobaccoAirline s CarsBeerMeat- based food Sports Shoes Portable Computers Toilet Tissue Ski 898588997 79845N/A 7973 687

8. Global industry? Industries and their competitive scenes themselves are also considered quite global as a whole. Airlines: “The airline services are considered global. In the last few years alliances among companies have been introduced to extend their worldwide leverage and improve their worldwide service.” Tobacco: “There are 5 big global players (Philip Morris, BAT etc.) representing 60% of the market share. But it shouldn‘t be neglected that 40% are monopolistic local players“ Beer: “In Germany there is a preference for the local products (…). In the USA and other countries such as Japan, Netherlands, Spain it is the opposite.” TobaccoAirline s CarsBeerMeat- based food Sports Shoes Portable Computers Toilet Tissue Ski 999659998 99953 9885 857