Standardization vs Localization: Picking the Best Path for Growing Your Global Business

Standardization vs Localization: Picking the Best Path for Growing Your Global Business
Growing a business at the global level requires different marketing strategies. You can market your business across countries using a standardization or localization approach. While one maintains a uniform brand identity, the other responds to the cultural uniqueness of each market. Both marketing strategies benefit a business; the choice of which to use depends on the goals of a company.

Standardization Strategy

Ever seen a Starbucks outlet serving espresso differently, whether you are buying in New York or in Dubai? This is the essence of standardization. In the standardization strategy, all the products, services and marketing remain uniform across countries. This strategy aims to have a consistent brand image across the globe.

The standardization strategy for marketing involves using the same branding, messaging and ad campaigns anywhere in the world with minimal changes.

Companies use standardization to lower marketing costs, improve brand recognition, simplify operations and generate trust in the brand. This strategy can be deployed by both big companies and SMES.

Localization Strategy

Companies using localization strategy adapt their products, services, design and marketing, adhering to the local culture of a region. For example, Cadbury’s “Diwali Celebrations” marketing campaign is localized for the Indian cultural context, where people give delicacies to others on the Diwali festival. If we take the case of Starbucks from above, it too has adopted a localized strategy in some of its stores by introducing new blends in India like the South India Filter Coffee, masala chai, etc.

On the marketing front, localization is the adaptation of the entire content into a target market’s local culture, language, and regulations. From translating the content into the local language to ensuring cultural nuances in marketing messages and adhering to local legal regulations, localization is a thorough process. It is beneficial to a business on many accounts.

Localization helps a business get accepted in a new market quickly, enhances communication, develops a loyal customer base, increases brand reach, and improves revenue growth.

Standardization Vs Localization: Which to Pick?

The major differences between standardization and localization are here to see. With standardization, the priority is uniformity and consistency. Be it brand messaging, product design, customer service, or anything else, everything is uniform across regions.

Standardization helps customers identify the brand quickly. Moreover, standardization allows for global strategy alignment, making it simple to launch marketing campaigns quickly anywhere in the world.

Localization, on the other hand, is all about customisation and adaptation to the local culture, preferences, behaviors, etc. Though it is a time-consuming process as the company has to strategize and adapt to each market differently, it has some advantages.

The personalized content in one’s language with cultural adaptation breeds brand loyalty that a standardized approach cannot deliver. It enhances a company’s relevance in the local market.
With localization, even a small company can compete with a big multinational that uses standardization. And localization helps a business to quickly adapt to the changing trends and preferences of local consumers.

However, localization is costly, operationally complex, cannot achieve economies of scale, and risks diluting brand image globally.

Now, which to pick for global business growth?

Hybrid Approach

To choose standardization or localization depends on your product or service offerings and your business goals. However, companies can employ a hybrid approach of utilizing both standardization and localization strategies. A balanced blend of both strategies can help a business grow internationally.

The marketing foundation at the global level must follow a standardization strategy. Branding and messaging must be uniform and consistent across markets. It helps form a strong brand identity. Apple is the best example of using standardization as its global marketing strategy. Apple ads are uniform everywhere. It presents its products’ unique design and features similarly across the world.

At the local market level, localization strategy is beneficial. Translating marketing materials, websites, and other forms of content to local audience preferences is part of localization. By looking at the example of Apple again, the tech giant includes a localization strategy to attract the local audience. Its websites across regions are localized to the target market. Its products include local language support.

Some companies that use the hybrid approach are Coca-Cola, McDonald’s, and IKEA, among others.

The Final Choice

The choice between standardization and localization depends on your deep understanding of the markets. Analyze your local audience, consider your operational capabilities, and calculate the cost-to-benefit. In the end, a hybrid approach would appear more suitable than a single strategy.

If you are looking for comprehensive marketing services, standardization or localization, CHL localization is here to help. With over three decades of experience in the language industry, we deliver the best results at cost-effective prices.