Polycentric Marketing

Polycentric marketing is a strategy where a business treats each host country as unique and develops tailored marketing strategies for each market. Each subsidiary operates independently and adapts products, pricing, and promotions to local tastes and conditions.

Unlike ethnocentric marketing, which assumes the home or domestic market is dominant, polycentric marketing puts the customer’s local needs first.

Businesses using polycentric marketing understand that cultural, economic, and social differences between markets can be significant. As a result, they empower local teams to make decisions and create marketing plans that are most effective in their specific regions.

While this leads to a high level of localisation and potentially strong customer loyalty, it can also be more costly and reduce the consistency of the brand across countries.

Examples:

• Nestlé: Nestlé offers different products in different markets—its instant coffee brands, for example, vary significantly between the UK, Japan, and Brazil based on local preferences.

• Procter & Gamble (P&G): P&G develops region-specific marketing strategies for its personal care products, such as different shampoo formulas for different hair types and climates.

• KFC: In markets like China, KFC adapts its menu heavily, offering dishes like congee or spicy chicken wraps to suit local palates.

Benefits of Polycentric Marketing:

• High relevance to local consumers

• Greater market penetration and customer trust

• Flexibility to respond to local competitors

• Enhanced cultural sensitivity

Drawbacks of Polycentric Marketing:

• Higher costs due to duplication of efforts

• Difficult to maintain consistent brand image

• Limited economies of scale

• Complex international management structure