Global Brands (DP IB Geography)

Glocalisation

• Glocalisation is when a global company produces goods that are aimed at the local market

• For example, in India:

  • McDonald's does not have beef or pork products on their menu for religious reasons

  • Whirlpool redesigned their washing machines to account for the challenges of washing five-foot-long saris

Cultural hybridity

• Globally, there are a number of different cultures co-existing at the same time

• Where two or more of these cultures combine, a new culture emerges

• This is known as cultural hybridity and is linked to globalisation

Case Study: Coca-Cola

• Coca-Cola is an American TNC that manufactures, markets and sells soft drinks

• It was established in 1886 in Atlanta, where its HQ remains, and now operates in over 200 countries

• Two-thirds of Coca-Cola’s revenue comes from overseas and it owns other brands like Fanta and Sprite

• Coca-Cola has promoted itself through global advertising campaigns and by sponsoring major sporting events

• It is one of the most recognisable global brands

  • After the word 'OK', 'Coca-Cola' is thought to be the most understood word in the world

• The production and distribution of Coca-Cola are done through a franchising model

  • Coca-Cola produce the main syrup base and local people with local resources produced the drink

• Globally, there are variations on the original formula to meet local demand, including:

  • Coca-Cola with lime, only available in Canada, the USA, Singapore, UK, Belgium and the Netherlands

  • Coca-Cola Blak only available for two years

  • Coca-Cola Citra only available in Bosnia and Herzegovina, Japan and NZ

  • Coca-Cola Clear which was only available in Canada, France and Australia

• There are only 2 countries in the world that do not sell Coca-Cola

  • Cuba

  • North Korea

  • Bolivia came very close to banning Coca-Cola in 2012; however, the government encouraged its population to drink less cola and have a healthier alternative instead

Case Study: McDonald's

• McDonald's have kept the same logo, the same brand colours, the same tagline, the same brand values and the same clown everywhere

• This is the global part, as it makes them easily identifiable in any country

• The local part is the food

• They try to maintain the familiarity of its products, which are customised according to local tastes, culture, customs and opinions

• For example:

  • In India, you will get a McAloo tikki

  • An Ebi Burger in Hong Kong

  • Corn Pie in Thailand

  • Big Brekkie Burger in Australia

  • Bulgogi Burger in South Korea, etc.

• The local is confined to certain aspects of the product while still being global when it comes to a brand image