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Eprg Framework

The document discusses the EPRG framework for international marketing operations. The EPRG framework describes four orientations that a company can take in international markets: ethnocentric, polycentric, regiocentric, and geocentric. Each orientation differs in the level of autonomy given to foreign subsidiaries and the view of cultural and market differences. Examples are provided for each orientation.

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Ruchita Singh
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484 views17 pages

Eprg Framework

The document discusses the EPRG framework for international marketing operations. The EPRG framework describes four orientations that a company can take in international markets: ethnocentric, polycentric, regiocentric, and geocentric. Each orientation differs in the level of autonomy given to foreign subsidiaries and the view of cultural and market differences. Examples are provided for each orientation.

Uploaded by

Ruchita Singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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E.P.R.G.

Framework
EPRG Framework- What is it?

• EPRG framework was introduced by Wind, Douglas and Perlmutter


focusing on International marketing operations. It describes the different
attitudes that the management of a company has about International
Markets.

• The EPRG framework addresses the ways strategic decisions are made in
the company and what is the nature of relationship between the
companies headquarters and its subsidiaries outside.

• It consists of 4 stages and the framework states that companies operate in


one of the following four ways in International markets.
STAGES OF EPRG FRAMEWORK
Ethnocentric Orientation in EPRG Framework

• Under this orientation, the management believes that marketing practices


followed in the home country will succeed in the foreign markets. No
adaptation is required to launch a business into another country.

• In this orientation Foreign markets are looked as just extended arms of


domestic markets. In such firms all foreign market operation planning and
strategizing is done from the home base. There is little or no differentiation in
products, price and promotional measures according to international market.

• The management is inclined over hiring top executives from home country
because they have a notion that domestic nationals have more supremacy
over driving the business.
Advantages & Disadvantages of
Ethnocentric Orientation

• Advantages :
• There is better coordination between the home and host country as
strategic decisions are taken centrally for all subsidiaries.
• Saves cost of hiring top level management in international market as
officials can migrate from the home country whenever required.
• The parent company can have a better watch on the operations and
hence exercise an effective control over the subsidiary.
• Disadvantages :
• It shows cultural short-sightedness of the organization.
• The failure rate of business decisions under this approach is relatively
high.
EXAMPLES

• Chopsticks Vs Western Cutlery


• Judging Other Countries’ Diets
• My Big Fat Greek Wedding
• Colonial Imperialism
Throughout the era of European imperialism and colonization, there was a
widespread belief that Indigenous populations were inferior or even unintelligent.
• Delegitimizing Others’ Religious Celebrations
in 2014, China attempted to crack down on the celebration of Ramadan in the
Muslim region of Xinjiang.
EXAMPLES

• Nissan tried for a long time to design cars in Japan and shove
it in the US market. But all was for vain.

• Similar was the case when Walt Disney decided to venture


into France with similar marketing strategies as in US. The
minister of culture in Paris announced that the park be
boycotted because it was an unwelcome symbol of American
Clichés and consumer society.
Polycentric Orientation in EPRG Framework

• This orientation is completely opposite to the mindset in


ethnocentric orientation. The manager under this approach
believe that all markets are different in nature and thus have
their different needs.

• There is complete autonomy for subsidiaries to formulate


their own marketing and operational plans. There are
executives from host countries who carry out the decision
making.
Advantages & Disadvantages of
Polycentric Orientation

• Advantages :
• Lower manpower cost as it does not require specialized officials from
home country to run operations.
• Local officials have knowledge about the local market and hence take
market centric decisions.
• Disadvantages :
• Lower control of headquarters over host country management.
• Overall cost of the company generally tends to rise due to targeted
offerings and promotions.
EXAMPLES
• European McDonalds often serves wine in addition to soft
drinks. There is a special Dutch cookie Mcflurry on the menu
in Netherlands.

• Another firm with its polycentric approach is google. Rather


than attempting a single doodle worldwide, it adapts itself
according to different countries. There may be a different
person being honored in India and at the same time some
other festival being celebrated in USA.
Regiocentric Orientation in EPRG Framework

• In this approach, the management is of the mindset that similar


countries that happen to exist in the same region are similar in
identity. This means that strategies that are developed for the
home country can work very well in these regional countries
also.

• The management of the company figure out the economic,


social and political similarities between the native and the
oversees region and satisfy similar needs and demands of the
customers.
Advantages & Disadvantages of
Regiocentric Orientation

• Advantages
• Cultural fit is the biggest advantage of regiocentricism as managers find it
convenient to communicate with each other and other employees.
• The customers from the same region have similar likabilites and hence it is
easy to communicate and deliver to them.
• Disadvantages
• It may lead to confusion between regional objectives and global
objectives. The true essence of globalization may become blurry.
EXAMPLES

• Coca Cola has been using a regiocentric approach in


formulating its messages for a basket of countries which
includes India, Pakistan and Bangladesh.

• Goodyear International, the tire major also has clubbed


various countries with similar policies and economic
landscape. Asia-Pacific is one region, Europe is another and
the rest of the world is divided into Latin America, North
America, Middle East and Africa.
Geocentric Orientation in EPRG Framework

• Geocentric orientation is a truly global orientation. The management with


this mindset sees the whole world as a potential market.

• The management considers that there are minimal differences in terms of


marketing environment amongst different countries. Thus, it is beneficial
for a company to keep a ‘world Oriented’ view rather than a country
specific, multi-domestic approach.

• The management identifies similarities and differences between markets


and countries and seeks to create a global strategy responsive to local
needs.
Advantages & Disadvantages of
Geocentric Orientation

• Advantages
A geocentric approach makes it possible for businesses to be
competitive wherever they are launched.
• It’s a win-win situation for both the firm and the international
markets as it is standardized but at the same time very agile.
• Disadvantages
It is a challenge to find a management that is capable of
adapting to multiple styles at once.
• There is a benefit lost in terms of being experts in one country
or domain.
EXAMPLES
EXAMPLES

• KFC has a ‘vegetarian thali’ and a Chana snacker to cater to


vegetarians in India.

• Viacom’s MTV channels are branded according to the country


they are operated in namely MTV India, MTC China, MTV
Korea and many more. It hires more people from these
nationalities and plays according to respective cultures.

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