Oreo

1. Joint ventures: A joint venture could be defined as a partnership between 2 or more
companies/organizations. In International marketing context, the joint venture internationally could
be with a local company of the other country or a multinational company of another third-country.
Pros:
• The benefit of a Joint venture in both the case is the financial exposure of the company is
limited. Because the financial liability/cost is divided between both the organizations and
thus reducing the risk.
• A company when venture with another local company reduces the anti-MNC feeling. A
presence of local partner provides lot of support in adapting to local culture.Also, when it
venture with MNC of 3rd
country, they get an additional bargaining power.
• Local companies can help you garner local business connections as well connections with
governmental authorities which are vital for success.
Cons:
• A drawback could be to share the profits. Whatever would be earned will be share between
both the companies
• The division of responsibilities, liabilities could be cumbersome.
• Complex legal disputes may arise if entered international markets without setting up proper
legal clauses on the negotiation table.
Licensing/ Franchising: This is an agreement where you license a technology for either
manufacturing it or distributing it for a fees in foreign country. The fees could be a fixed fee or a
sales percentage.
Pros:
• Effective in cases where technology is unique.
• It requires lower capital than setting up the entire company for this technology
• Return on Investments could be high considering low investment and using already
established technology.
• It poses lower economic risk as the product is already established in market.
Con:
• There could be situations when a Licensee can refuse to pay the desired fees.
• The company may lose Intellectual Property rights or the other company may pose a great
threat to original manufacturer.
• The Licensee company if failed to live up to your management in a different country can
damage brand’s reputation in international market.
Planned Domestication: This strategy is sued when the country where you are planning to enter is
demanding local participation and thus the host country gradually transfer all investments under
their control by means of several government decrees that stresses importance of local ownership.
Pros:
• This strategy could be operationally effective and profitable for the investing company.
Con:

2. • There is a risk of company getting confiscated entirely by government.
Political Bargaining: This is a strategy when a multinational company involves in political lobbying to
earn patronage and avoid potential political risks.
Pro:
• Foreign companies resort to increase prices of their own products when domestic
companies are failing in order to be supportive
• The country can set export quotas when they feel that due to their products the
international market’s domestic companies are struggling
Con:
• Companies can sell their lower quality products also by using their strong political
connections in host countries which may hamper other companies in the same market.
Expanding the Investment Base: This strategy is used when the banks and financial institutions have
invested in the host country. This strategy leverages the strength of banks whenever you company
will face threat/ risk of expropriation by host country.
Pro:
When there is a threat of expropriation or takeover by the government, the local bank/financial
institution has substantial power with the government.
Con:
There is still a risk in this method.
What is the key take-away to lesson vulnerability in Global Business? Explain
The key take away to lessen vulnerability in Global Business is to establish strong local connections
and strong roots. Many a times the government impact or involvement in an international business
is far greater than it is assumed. The foreign entity should make their activities politically acceptable.
If a company is considered vital for the economic and social growth of the country, then the host
country will provide protection and other support to the international company. The companies
should be more responsive to the communities needs and keep their interests at the heart of the
business. Also be more culturally responsive to the host nation, respecting their cultural sentiments
or developing appropriate products are marketing promotions which doesn’t evoke a backlash.
For a company to thrive in international market they should also have good local connections,
business alliances to leverage their core competencies. The companies should be more collaborative
with the local customs and interests. They should consider all factors before entering in the market
with proper research of Political legal forces, cultural forces, geography and infrastructure, economic
forces also.
Marketing in a developing Country - In evaluating the potential in a developing country, the marketer
must look at what two areas?
In evaluating the potential of a developing nation, the marketer should look at 2 areas-
1) Level of Market Development
• The marketer should consider the existing level of market development and whether they
are receptive to our product

3. • The more developed a country or its economy, the greater is the requirement of marketing
functions there.
• Marketers should study their economy properly as to what will be useful for them in foreign
market and how much adjustments will be required in the objectives,
2) Demand in developing countries
• The company should consider whether there is a demand of that particular product in
that market.
What are the three distinct kinds of markets in each country? Describe them in detail.
The 3 different kind of markets in each country are
1) Traditional rural/agricultural sector
• This sector likes to work in the country side. These people are completely opposite to
the modern class. They like traditional old ways of living and are majorly into agriculture.
2) Modern urban/high income sector
• This sector lives in capital city and has a constantly expanding middle class base
• They have all kind of facilities like international hotels, airports, factories and all major
brands.
3) Transitional sector usually represented by low income urban slums
• This sector has those people who are moving from the country side to the larger cities.
• This sector is the biggest challenge for the marketers.
How does demand differ based on the market type? Explain
The traditional sector has more older ways of living and traditional ways. They are majorly into
agricultural sector.
Modern urban sector has demands of the developed nations. They want all kind of facilities and live
in the city. The facility comprises of all basic to developed demands like airports, transportation,
basic health amenities, hotels, luxurious brands etc.
Transitional sector people are currently moving from slums to larger cities and hence they are
currently in process of building up tastes and preferences and adapting to the city and modern
sector.
Provide an example of a country with all three markets WITHIN it's political borders, and name or
create a product that would do well at each level.
For example- India has largest industrial economy, the modern sector people have modern demands
of developed products and services similar to a developed/ industrialized nation and it also has a
rural sector.
The rural sector however can do well and survive without many products. Basic hygiene products
are important but many rural areas still do not have any access to the basic items.
The Transitional and rural sector demands are basic and more indigenous however they are still in
process of figuring out their preferences.
A product that will do well at each level will be Rickshaws. In India Rickshaw can cater to both
middle class and rural sector. They are also used very frequently with the modern rich urban sector
and their children for convenience when they have to travel to shorter distances. These Rickshaws
have ease of flexibility and avoiding traffic jams and is ideal for travelling to shorter distances.

4. Oreo's wants to continue global expansion to South America. Consider a.) the entire continent of
South America, and b.) the Individual country of Brazil.
5 points: In your opinion, what elements of the product and marketing campaign could be
standardized? Can you provide a creative example of how you would standardize the product and/or
communications?
5 points: In your opinion, what elements of the marketing campaign or product should be adapted?
What adaptations do you propose and why.
*Make sure to justify your answers! Outside research on culture is highly encouraged, as well as
citing your work.
South America is a diverse continent comprising of 12 sovereign states Argentina, Bolivia, Brazil,
Chile, Colombia, Suriname, Uruguay, Venezuela, French Guiana, Falkland island, Ecuador, Guyana,
Paraguay, Peru. The cultures are as diverse as the nation. But one thing which can be standardized
across the continent is their Family Orientation. The overall message across continent could be
focused upon the family where kids are shown with their parent. Also, all Oreo commercials
highlight the nostalgia factor to the audiences. By looking at the commercial, the audience including
the teenagers or youths in their 20s may recall how they used to eat cream biscuits in their
childhood. This would prompt the kids as well as the youths to eat Oreos to relive those moments.
All the countries across the world share same kind of relationship between children and parents,
young families with small kids and also working parents. This particular fact could be standardized
across the continent where the bonding between a girl and dad is shown through oreo moments,
young working parents come home to find their kids enjoying their Oreo and also willing to teach
them how an Oreo is consumed. Oreo also can highlight sharing experiences over the Oreo
experience amongst families or a brother & sister.
Also, this fact is same in Brazil, the entire family have a tight knit which could be used in Oreo’s
family oriented approach.
Part2
Oreo company is capitalizing on the taste for very sweet desserts in entire South America including
Venezuela, Mexico, Argentina. The customization done in these regions was that Oreo cookies came
with 3 layers which resembled Argentine snack cake. Moreover, in few variants had 3 layers of
cookies with 2 layers of crème for that extra sweetness.
Also, the cream could be customized matching tastes and preferences by introducing half and half
cream variants like Strawberry & Vanilla; banana & dulce de leche.
Individualism score: Brazil:38, Argentina:40, Ecuador:8
People of Brazil are very loyal to the family but they are much more individualistic than other
nations like Ecuador. This means they are more likely to try new products.
In Brazil, families are the centre of their culture, families are large and have 2 kids on an average per
family. Approximately 53% population is middle class and 40% of working class are women in
businesses. This implies that the strategy of parents and kids will work in brazil.

5. Brazil Uncertainty avoidance index is 76 which means they show lower tolerance of uncertainty and
thus wont readily accept a new variant or new product of Oreo. Thus, they should stick to the
standard tastes of Chocolate and milk in Brazil also.