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Global Marketing - Research Paper Example

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The environment of the US is different from the environment of Brazil because the usage rate of the disposable diapers is different in both countries. The customer…
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Global Marketing Global Marketing The advertising of the disposable diapers in the United s is different from the advertising done in Brazilian. The environment of the US is different from the environment of Brazil because the usage rate of the disposable diapers is different in both countries. The customer base of the diapers varies in both countries. The advertisement done in the US is slightly different from Brazilian advertisement subject to the perceived preference of disposable diapers among the American customers (Weiss and Cooke, 2010). The promotions of the disposable diapers also vary subject to the environmental conservation measures existing in the two countries. The disposable of waste in the two nations varies hence the preference of the diapers may vary between America and Brazil. US citizens are sensitive to a green environment compared to the Brazilians.
Additionally, the market of disposable diapers in Brazil is not vibrant like the US disposable diaper market. The promotion of diapers made in the US rate responsible for the high portion of per capita income spent on the disposable diapers. The US is also sensitive to the welfare of children hence the need for good care for all children. Conversely, the Brazilians are not sensitive to the plight of their children with regard to hygiene and sanitation. The increase in the birth rate in America is another factor, which makes the American market for disposable diapers vibrant. For instance, the 4.5M children are born in the US on an annual basis. This implies that the disposable diaper market must meet the needs of the growing population of children in the US. Additionally, more than 3M people turn 65 years old on annual basis. This implies that the demand for disposable for children and old aged adults is high in the American population.
Disposable diapers pricing should not be left to the local managers of Brazil because the market for disposable diapers in Brazil is small. Additionally, of the product should be left to the head office to ensure consistency and compliance to market standards. Pricing of the disposable diapers should coincide with the global trend of the product demand and supply (Nonwovens markets and fiber structures report, 2009). Therefore, the move of leaving pricing to the local managers is not prudent. Moreover, the local cartels are likely to take advantage of decentralization of pricing, which will negatively affect the customer disposable diaper loyalty. The other reason for adoption of global pricing of the disposable diapers is the need for quality disposable diapers. Standard pricing will ensure that the supplies of the product are identified with quality rather than quantity of the disposable diapers supplied.
The Brazilian local managers will not meet the threshold of quality required by the customers of the disposable diapers. For instance, the market for the product is small. This implies that delegation of the pricing role to the local managers is not wise. The other factor for rejection of the move of localization of disposable diaper pricing in Brazil is the high rate of importation of the product. Smith (2012) asserts that the importation of disposable diapers implies that the quality of the diapers should match with the pricing of the country of origin. The Brazilian manufacturing and design sector is growing at a low rate, which justifies pricing of the product in their original country like the United States. The high competition of foreign companies in Brazil also makes local pricing subjective. For instance, P and G Company imports disposable diapers from Argentina. This increases the rate of local competition of disposable diapers in Brazil, and regrettably, this compromises pricing.
References
Smith, C. (2012). Diapers, dishes and Daddy: A Mommys daily devotions. Xulon Press:
Www.xulonpress.com.
Weiss, E., & Cooke, T. (2010). Bye-bye, diapers. New York: Golden Books Pub. Co.
Nonwovens markets and fiber structures report. (2009). New York, N.Y: Miller Freeman
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