Case Study

Abstract

The aim of this study is to research how can an international marketing strategy be simultaneously standardized and adapted to export markets. Moreover, it reveals that this strategy is more appropriate than the contingency approach, considering the case of a firm with very little expression in the global marketplace.

A single case-study based on the export venture of Renova Black toilet paper was developed. In addition to the analysis of secondary data, interviews were conducted with 3 Renova managers, 3 trade customers and 10 consumers.

Findings suggest that an international marketing strategy simultaneously standardized and adapted to new export markets forms a good fit with the existence of limited resources, light structure and centralized decision making possible due to firms’ reduced size. This study presents important insights for managers of small players in the global marketplace attempting to boost the internationalization process. It also broadens our understanding on the standardization versus adaptation debate using a fresh perspective.

Keywords: International Marketing Strategy, Exports, Standardization, Adaptation.

1. Introduction

The concept of Blue Ocean Strategy (Kim and Mauborgne, 2005) refers to value innovation as the solution for creating new market space through the simultaneous pursuit of differentiation and low cost strategies. However, a Blue Ocean Strategy implies assuming high risks as the size of the new market demand cannot be predicted (Lages, 2012). In order to mitigate this risk, Lages (2012) suggests that firms must adopt a GloCal mindset based on the identification of unknown similar needs and values across markets. This is how firms can render their marketplace global and satisfy regional needs, while benefiting from economies of scale and scope (Lages, 2012).

An ongoing debate in the literature discusses the implications of standardizing or adapting international marketing strategy to firms’ export performance.

3

Contingency theory represents the most recent research stream. It defends that the optimal degree of standardization is positioned along a continuum between pure standardization and pure adaptation, according to several forces both internal and external to the organization (Theodosiou and Leonidou, 2003; Katsikeas et al., 2006).

The GloCal approach stands out from this perspective. It suggests that it is possible to conceive an international marketing strategy simultaneously standardized and adapted to export markets, through identifying commonalities across the world (Lages, 2012).

The research focus of this study was based on the latter perspective, building on the analysis of evidence collected from the case of Renova Black.

Renova Black is a black tissue toilet paper, an incremental innovation1 introduced by the Portuguese medium sized firm Renova S.A., in a category with compromising growth2 (Bart et al., 2010). With Renova Black, the firm created a new market space through a new value proposition valued in Portugal and in many new foreign markets where it was not present. Through analysing Renova Black export venture, the GloCal approach (Lages, 2012) was used to answer the central research question:

How can