Dr. Hans-Willi Schroiff, vice president of market research at Henkel, a German c

Question

Dr. Hans-Willi Schroiff, vice president of market research at Henkel, a German company, made the following observation about P&G’s multinational marketing strategy: “A strict globalization strategy like P&G’s [will not be] successful if ‘meaningful’ local brands are corpses on the battlefield. It caused severe share looses for P&G here in Europe. Consumers do not switch to the global brand but to another brand that looks more like ‘home’ to them.” Comment on this statement. Do you agree or disagree (and why)?

Explanation / Answer

consumers are more intelligent than firms either national or international. they go with a firm which fulfill their needs and obligations in all dimensions. they measure what they pay and what they receives, but not from local player or foreign player. in this regards i oppose with the statment "consumers do not switch to the global brand they prefers to local brands".

there are many products which were born in one nation and ruling the world with their performance. Apple mobiles, SONY televisions, Nike shoes, US POLO garments, and many others. all these are performing well world wide, not only stick to their domestic nation.

hence, i can say that, if the producer creates a world class product, at reasonable cost, available to buy, then customers go with them. they do not assess that whether it is a local producers product or from foreign producer.

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