Examples of Adaptation to the Local Environment by Existing MNE - Research Paper

Introduction

MNE has to either standardize or adapt their marketing strategies in the various markets that they target. Some of the main dimensions to local adaptation include culture, business practices, government demand as well as the intensity of competition. However, over the past ten years, companies such as red bull have used dimensions such as product customization, distribution strategies, and channels as well as organizational structure.

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Red Bull

Red Bull is one of the multinational enterprises (MNE) that uses strategic tactics to sell its products in different countries. To succeed in different markets, the company uses differentiated marketing strategies that involve adapting and customizing its marketing and promotional activities based on each market's specific factors. For example, the Red Bull sold in North America has red and silver colors each of which symbolizes and communicates messages specific to that part of the world. The red bulls symbolize action while the silver color symbolizes youthfulness and the spirit of adventure. In China, the cans are colored in red and gold, which implies good luck, wealth and happiness. Red Bull GmbH has therefore managed to be an adaptive multinational enterprise. Local adaptation in the emerging markets is defined by the culture and values of the targeted markets

McDonald's

McDonald's has consistently kept is the main branding strategy by implementing differentiated marketing in different markets. After the failure of the global markets in China, McDonald took an adaptation strategy in macerating and products development. Culture is one dimension that the company gives primacy when marketing in China and other Asian countries because of their cultural dimension. The company has also adapted its products quality including different flavors. The company offers burger made with Nurnberger sausages in Germany but removed pork in Indonesian market because the Indonesians are predominantly Muslim. Instead, they have replaced the pork with fish products. Every aspect of their products is designed with the region-specific menu. In 2003, for example, McDonald's introduced a flatbread sandwich, the McArabia, to the restaurants operated in the Middle East (Hatzithomas, Fotiadis and Coudounaris 2016). Besides, the multinational organization has also introduced macaroons into the restaurants situated in France as a way of being specific to the taste and preference of the French.

Coca-Cola

Coca-Cola is one of the great examples of brands which use adaptive international marketing efforts. Despite being a large corporation, Coca-Cola has focused on small community programs and invested a lot of money and time in many small-scale charity efforts. An example is the case of the enterprises in Egypt in which in which the company has established 650 installations of clean water systems in the village of Beni Surf. Moreover, it sponsors most of the Ramadan meals for children across the Middle East. The brand also works with schools in India for which it assists in building projects and supporting local initiatives.