Global products marketing strategy of two European MNCs in Vietnam

Abstract

Purpose The purpose of this paper is to analyze how two multinational companies (MNCs) faced the challenge of market uncertainty and political instability in a newly emerging market, and how it affected the impact of their product marketing strategy (PMS) and product (brand) performance. Design/methodology/approach A comparative longitudinal paired case study of a market entry by two global MNCs. Twelve global brands (products) were studied, which were locally manufactured and launched by the two MNCs during their first ten years of operation in Vietnam. Findings The authors approached the investigation from a conventional point of view: standardization versus adaptation. The results showed that in addition to these two traditional processes, a third one was also operating, which the authors labeled semi-adaptation, or the midway PMS. Semi-adaptation refers to a product that has been introduced to Vietnam from a neighboring country. Research limitations/implications This research is based on two European MNCs active in the food and consumer-household goods industry in a newly emerging market: Vietnam. Practical implications This primary data indicate that the product standardization, semi-adaptation and adaptation process in practice is a technique applied to fit a product to a newly emerging market more by degree of change than by product category. Originality/value This paper supports a recent stream of research, which views Standardization or Adaptation as the two ends of the same continuum, where the degree of the firm’s PMS can range between them.

Face-Saving and Seasonal Gifts: Analysis of Cultural Exchanges in the Confucian Market Place

“…According to (Groom, 2018) Valentine's Day has a long tradition dating back thousands of years, however, a vital element of the event is that it is celebrated by "lovers" and features exchange of gifts. Despite its popularity among the younger population of Vietnam, Valentines is not fully embraced among the older generation, especially those above 60 (Wafler and Badir, 2017). With the speed of acculturation taking place in Vietnam however, it appears that a lot more older folks will embrace sooner rather than later the celebration of Valentine's.…”

“…Since the 1980s, Vietnam has experienced substantial economic reforms that transformed the country from a centrally planned economy to a market-oriented, business-driven one; stimulating high GDP growth and rapid improvement in living standards (Benuyenah and Phoon, 2014). Despite its strong cultural roots (Hofstede, 2011) improvements in Vietnam's household income (Wafler and Badir, 2017), might eventually alter the perception of gift valuations and eventually how the question of inefficiency is addressed in the retail sector where gifts are generally traded.…”

Products they are a-changin’

“…The article “Global products marketing strategy of two European MNCs in Vietnam” by Wafler and Badir (2017) is a must-read case study for any product manager seeking to launch a new product into an emerging economy where there is limited market knowledge. Both the firms analyzed in the study got some things wrong with their products, but mostly they got it very right with their semi-adaptive strategy.…”

Optimization of Brand Marketing Strategy of Intelligent Technology under the Background of Artificial Intelligence

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