Why Localization Is Necessary as a Business Strategy in Emerging Markets: The Case Comparison of Hyundai and Volkswagen

Lee, Jungyoun; Kim, Jungyeon; Kim, Jiwoo; Choi, Seungho

doi:10.3390/joitmc7030190

Cited by 4 publications

(5 citation statements)

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“…In 2008, the Lavida, the first localized model of the Volkswagen Group in China, was launched and received a frenzy of interest from consumers. Lee et al identify that localization, the process of establishing the adequate system in the target market according to the given environment to produce the most viable product in the market, can help multinational enterprises (MNE) to better understand the market, and take the most appropriate actions needed [3]. Subsequently, Volkswagen Group has launched various localized models in China, such as Tiguan L, T-ROC, and other long-wheelbase versions.…”

Section: Literature Reviewmentioning

confidence: 99%

A General Analysis of VW Group's Marketing Strategy in China under Digital Era

Li,

Nie

2024

AEMPS

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Volkswagen is a household name in China. VW brought its first car- Santana to the Chinese market in the 1980s. Nowadays, Volkswagen cars are everywhere on the streets of China. The reason why Volkswagen is favored by the 1.4 billion Chinese people is inseparably related to the excellent marketing strategy of the Volkswagen Group. This paper analyzes a series of marketing strategies launched by the Volkswagen Group for the Chinese market and Chinese conditions. Using the 4P model, we analyze the marketing approach of the Volkswagen Group in China in the context of the digital era in terms of product, price, place and promotion. First of all, a wide product line and product portfolio allows customers to get the best value for money and the best price/performance ratio for their willingness to pay. Volkswagen's superior reliability has long been well-established. Moreover, Volkswagen has one of the cheapest post-production maintenance among all competitors. Secondly, the pricing of VW Group products in China is quite competitive, and it is almost difficult to get a car from a European brand other than VW at the same price level. Third, VW Group's distribution network in China is very large. It has dealers nationwide, and Volkswagen dealers can be found in almost all places, even county-level cities. Finally, in today's digital information age, VW Group also firmly grasps the opportunity to actively use internet platforms (e.g., TikTok, Little Red Book) for brand promotion and marketing. VW is also active as a sponsor at many large events in China, further enhancing its brand influence.

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Section: Literature Reviewmentioning

confidence: 99%

A General Analysis of VW Group's Marketing Strategy in China under Digital Era

Li,

Nie

2024

AEMPS

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“…Failing to consider cultural values can result in business failures, missed opportunities, or even reputational damage. Successful global businesses invest in culturally informed market research and localization strategies to ensure their products and messages align with local values and sensibilities [1,2].…”

Section: Importance Of Understanding Cultural Nuances and Valuesmentioning

confidence: 99%

“…Certain content, such as product information, may require more extensive localization, whereas brand messaging may have a global component. Striking the right balance is key [1]. c. Multilingual Content: Language is one of the most fundamental aspects of culture.…”

Section: 2strategies For Adapting Digital Content To Resonate With Di...mentioning

confidence: 99%

“…Ensure that the user experience aligns with the cultural expectations of your audience. For instance, some cultures may prefer more interactive websites, while others prefer straightforward and information-rich interfaces [1]. i.…”

Section: 2strategies For Adapting Digital Content To Resonate With Di...mentioning

confidence: 99%

“…These twin strategies are designed to help companies tailor their digital presence to the unique preferences, behaviors, and cultural nuances of different regions and demographics. Localization goes beyond mere translation; it encompasses a holistic approach to adapting products, services, and marketing content to make them culturally relevant and appealing [1,2]. Global Marketing, on the other hand, is the overarching strategy that guides how a company positions itself in diverse markets, ensuring that its digital efforts resonate with audiences worldwide.…”

Section: Introductionmentioning

confidence: 99%

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Localization and Global Marketing: Adapting Digital Strategies for Diverse Audiences

Okonkwo,

Mujinga,

Namkoisse

et al. 2023

J. Digit. Mark. Commun.

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In an increasingly interconnected world, businesses aiming for global success must navigate the intricate landscape of localization and global marketing. This manuscript delves into the pivotal strategies required to adapt digital marketing approaches, reaching and engaging diverse audiences worldwide. It emphasizes the significance of adapting digital marketing strategies through localization techniques to effectively cater to diverse global audiences. Staying informed is paramount, as a deep understanding of local news, cultural events, and ongoing conversations within a region is essential for creating content that remains timely and relevant. Active engagement in conversations related to local trends amplifies brand visibility and engagement within the community. Collaborating with local influencers provides an authentic bridge to regional audiences, offering valuable insights into the pulse of local trends. Aligning content with local values, interests, and sensitivities ensures that marketing materials resonate positively with diverse audiences. Additionally, the strategic use of localized hashtags enhances content discoverability. Encouraging user-generated content serves a dual purpose: fostering engagement and authentic endorsements, thereby bolstering brand credibility.

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Globalization and Luxury Brands

Triveshika,

Sukanya

2024

Advances in Marketing, Customer Relationship Management, and E-Services

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The luxury industry has changed in established and emerging markets due to the globalization of luxury brands. While rising luxury businesses combine tradition with contemporary and embrace digital channels for reach, established luxury brands draw on their rich history and innovate to stay current. Due to the mix of cultures brought about by globalization, luxury businesses now need to strike a balance between cultural sensitivity and global appeal. Luxury firms are being forced to adopt ethical business methods to meet the growing demands of consumers worldwide for sustainability. Luxury brands need to adapt to this changing environment, stay culturally sensitive, and embrace sustainability if they want to succeed in the international world of luxury consumers. This chapter focuses on the determinants influencing consumer behavior towards the existing and established brands in the backdrop of globalization.

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Why Localization Is Necessary as a Business Strategy in Emerging Markets: The Case Comparison of Hyundai and Volkswagen

Cited by 4 publications

References 24 publications

A General Analysis of VW Group's Marketing Strategy in China under Digital Era

A General Analysis of VW Group's Marketing Strategy in China under Digital Era

Localization and Global Marketing: Adapting Digital Strategies for Diverse Audiences

Globalization and Luxury Brands

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