For many international companies, they pose the same positioning, do the same differentiation, focus the same target customers, and launch the same products. The universal practices and standardized products lead to economy of scale and consistency of the company's image. These are part of the reasons why many international companies succeed in many countries. .
However, different culture derives different customers and different market environment. International companies use the same marketing strategy in different countries may not suit the local market. How a company strike a balance between standardization and localization is crucial to its success. McDonald's is the well known success story in the topic. It has the same image and the standardized food all over the world. Nevertheless, McDonald's provides lamb burgers in India and sells wine in France. These little adjustment and adaptation contribute a lot to a great success story.
I have chosen Biotherm and United Colors of Benetton to illustrate how international companies succeed and fail to strike a balance between standardization and localization in the Korea market. .
Biotherm (Korea).
When Biotherm first came to Korea, it was positioned as a premium French brand and differentiated as a natural skin care product with spring water. Nonetheless, consumers did not perceive it this way. They did not associate France with cosmetics and skin care but only fashion. Moreover, Biotherm did not sound like relating to spring water but chemicals. .
The most important thing is that the standardized skin care products do not fit Korean women's needs. Korea has a cold weather with a very low humidity most of the time in a year while France has a relatively warmer and more humid weather. The skin care and make-up habits of Korean and French women are very different. Biotherm does not provide a milky lotion what is an essential element in the skin care and make-up procedure of Korean women.
