Developing a uniform global marketing presence
A Heinz case study

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Page 2: Global marketing

Heinz 6 Image 2A global marketing strategy involves the creation of a single strategy for a product, service or company for the entire global market, embracing many markets or countries simultaneously and aiming to level differences between them.

Consumers across the globe share many common characteristics. In the 21st century we will increasingly see the development of a global consumer whether they live in Peking, Prague, Pittsburgh, Perth or Portsmouth. Today, fewer parts of the world are remote and difficult to penetrate thanks to the rapid development of new communications systems. Television, the Internet and other media are able to spread the message about product availability. Rapid transportation and technology transfer links bring products directly to where consumers want to buy them.

The marketing mix for an organisation (product, price, place and promotion) is designed for global consumption. In this way, for example, a standard advertising campaign will be rolled out across television screens around the globe, extolling the virtues of a product that will be identical in every respect regardless of location.

Companies that compete in the global arena are all too aware of the benefits of market leadership. Michael Porter, a business strategist, expresses this in simple terms - 'gain the lion’s share of the market and the profits will follow'. If you have 51% of the market your next nearest rival can only gain 49%. By winning the largest share of the market you are best placed to benefit from economies of scale – the advantages of being big - enabling you to lower the unit cost of producing items.

On a global scale, clear economies include:

  • the ability to mass produce items using sophisticated technology
  • being able to produce a single advertising campaign used in many individual markets
  • the ability to bargain from a position of strength when dealing with suppliers
  • the advantages of producing a brand that is universally recognised.

Heinz | Developing a uniform global marketing presence
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