Research from Term Paper:
Uniform marketing messages pertaining to the products as part of the same organization unit may be translated simply by diminished costs. This factor should not be glossed over, as promotional costs, as TV, radio, paper or Internet advertising represent an ever-increasing share in the total marketing costs sustained by the company. By using the same promotion method, costs will probably be most likely cut down. Also, another important effect is definitely the uniqueness figure of the business image all over the world – buyers at global level could easily explain, indicate or recognize the first characteristics from the PG items, the features in the products that differentiate all of them from competition’s items.
five. Innovation is the key to getting in front of competitors. The expansion and start of new goods would allow the company to present buyers with high quality and more progressive products. This way, PG may obtain better market transmission facilities; improve the consumers’ notion of the firm and outpace the fierce competition from Unilever.
III. What are the hazards associated with that?
The benefits caused by the strategy are clear, but also some potential hazards have to be talked about in relation to the commercial activities adopted simply by PG. Basically, there are three risk pillars identified by simply specialists: standardization, closing down plants and firing workers, and improved costs incurred by the Research and Development department. Within the next paragraphs, we need to discuss these types of topics one at a time.
First of all, a Standardization strategy assumes that the image of the organization should be transmitted in a consistent manner around the world. This is very useful in terms of cost reduction, but it may well generate problems in regard to the public’s acknowledgement of the Firm and its items. The main danger for PG comes from the lack of customization of promotion, merchandise mix and similar types of procedures, according to the particularities of the countries in which PG offers its products. Due to the common character with the corporate graphic and message, consumers may perceive the organization in a different manner than what the management initially designed. Lack of modification leads to distress and the company message can be not sent through as a result of cultural variations. Confusion comes forth due to not perfect translation in the corporate devise, for instance, resulting in misused words, phrases without content, or perhaps slogans with a different meaning than the company’s original intent. Also, the cultural differences among numerous countries are very striking, especially if we consider the icons, significance of colours or taboo subjects. In the event within a single country, a particular promotion meaning transmits a certain idea, in other states the organization information could be misinterpreted due to the above mentioned reasons.
Secondly, the operations geared towards closing straight down plants can negatively effects the relationship among national government authorities (especially in Europe) as well as the PG Company. The central authorities during these countries can not be satisfied with the fact that developing units happen to be closing down and that unemployment levels are increasing – especially for blue-collar workers.
On the other hand, innovation can be described as key element pertaining to outpacing competition. But occasionally, and this may be the case pertaining to PG, companies tend to place increased emphasis on innovation, deviating from the main objective of the commercial approach – to lessen costs and increase the overall efficiency with the company.
