International advertising campaigns in fast-moving consumer goods
companies originating from a SMOPEC country
Peter Gabrielsson a,b,Ã, Mika Gabrielsson b
, Hannele Gabrielsson c
a
International Marketing, University of Vaasa, P.O. Box 700, FI-65101 Vaasa, Finland
b
International Business, Helsinki School of Economics, Finland
c
Arcada Polytechnic, Finland
a r t i c l e i n f o
Article history:
Received 18 October 2007
Received in revised form
13 July 2008
Accepted 29 September 2008
Keywords:
Fast-moving consumer goods companies
International advertising campaigns
Internationalization
a b s t r a c t
A particularly interesting area of research concerns how international fast-moving
consumer goods (FMCG) companies from small and open economies that operate in
turbulent markets plan successful advertising campaigns for international markets. The
objective of this research was to determine how they are planned and what factors
affect this planning. The theoretical part of the study reviews literature related to the
internationalization of firms, international advertising campaigns, and standardization
versus adaptation of international advertising. Based on the literature, a theoretical
framework and propositions regarding the international campaign planning process for
FMCG companies were developed. The empirical part uses the multiple-case study
method to examine four FMCG companies that were founded in Finland. The empirical
results show that five stages are especially important in the international campaign
planning of FMCG companies. Moreover, the companies need to consider a number of
factors when deciding on international adverting campaigns. The study presents a
number of theoretical contributions and managerial implications. A novel finding
relates to the importance of understanding the impact of the internationalization/
globalization phase of the company. During internationalization often within the home
continent, companies increasingly adapt advertising campaigns to different countries,
whereas globalization to other continents calls for increased standardization across
countries. Another interesting finding was that FMCG companies from small and openeconomy
(SMOPEC) countries often use innovative non-traditional campaigns to
overcome the resource limitations.
& 2008 Elsevier Ltd. All rights reserved.
1. Introduction
The highly competitive market place and rapidly changing consumer trends in the fast-moving consumer goods (FMCG)
field require these companies to introduce new products at an increasing rate and effectively promote them in their target
segments of the international market. The turnover rate for inventories in this field is especially high. Understanding the
impact of globalization and finding the right advertising strategy, campaigns, and media worldwide are important in this
area (Kitchen, 1993).
Contents lists available at ScienceDirect
journal homepage: www.elsevier.com/locate/ibusrev
International Business Review
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0969-5931/$ - see front matter & 2008 Elsevier Ltd. All rights reserved.
doi:10.1016/j.ibusrev.2008.09.008
à Corresponding author at: International Marketing, University of Vaasa, P.O. Box 700, FI-65101 Vaasa, Finland. Fax: +358 6 324 8171.
E-mail address: peter.gabrielsson@uwasa.fi (P. Gabrielsson).
International Business Review 17 (2008) 714–728
FMCG can be found in many fields such as high fashion clothes, design articles, many consumer electronic fields, and the
food industry. Companies such as Zara, Luhta, Wilson, Finlandia Vodka, Fazer, and Lumene, all of which are well-known
brands, are included in this field. In this study, special emphasis will be on international advertising for high-fashion
clothes, cosmetics, and spirits.
International advertising research has focused on standardization of international advertising (Agrawal, 1995; Laroche,
Kirpalani, & Pons, 2001; Peebles, Ryans, & Vernon, 1977; Solberg, 2002), consumer responses to international advertising
(Pae, Samiee, & Tai, 2002; Zhou & Belk, 2004), the content of international advertising (Harris & Attour, 2003; Mueller,
1991), social/ethical issues (Borgerson & Schroeder, 2002), cultural values (Aaker & Williams, 1998), and international
advertising agencies (Aydin, Terpstra, & Yaprak, 1984; Cheung & Leung, 2007; Walters, Whitla, & Davies, 2008).
Nevertheless, research on the international advertising campaign process has been relatively scarce (see e.g. Zou, 2005).
Several authors have, however, stressed the importance of understanding the steps involved in international advertising
campaign management (Peebles, Ryans, & Vernon, 1978; Taylor, 2005). This is especially important, as international
advertising is a complicated process that often involves company headquarters (HQ), company subsidiaries, agency head
offices, and local agency branches (Vardar, 1992, p. 7). More research is required for an understanding of the factors
affecting international advertising campaigns (Taylor, 2005). In this context, the impact of internationalization and
globalization on international advertising campaigns is an especially neglected research area. Researches on international
advertising of companies from small and open-economy (SMOPEC) countries or advertisement in these countries have
been very limited with only a few exceptions (see e.g. Chung, 2005; Hoeken et al., 2003; Shoham & Albaum, 1994; Solberg,
2002; Solberg & Durrieu, 2006).
As investments in advertising are large for often relatively small companies in SMOPEC countries, it is important to plan
and execute international promotion campaigns effectively in order to stay competitive, and this is particularly so in the
FMCG field. Based on this discussion, the main research question may be formulated as follows: How are international
advertising campaigns planned in FMCG companies from SMOPEC countries and what factors have an impact on this planning?
This research is limited to the FMCG field and especially to companies that originate in Finland, a typical SMOPEC
country, and produce high-fashion clothing, cosmetics, and spirits. FMCG companies are those that manufacture and
market goods with a short shelf life either as a result of high consumer demand or because the products become obsolete
relatively fast (see e.g. Vyas, 2005). The research method selected for conducting the investigation is qualitative and the
multiple-case study method in particular was used (see Yin, 2003).
2. International advertising and the framework for FMCG companies
2.1. Internationalization of FMCG companies from SMOPEC countries
The concept of internationalization is described as the process of a company’s increasing involvement in international
markets. Research shows that companies develop in a stepwise manner (Johanson & Vahlne, 1977; Luostarinen, 1979). The
globalization process, however, has been studied less. Previous literature has described globalization as a change in the
management orientation towards a geocentric orientation (Perlmutter, 1969) and also as the development of strategies of
globalizing companies (Douglas and Craig, 1989; Yip, 1989). Douglas and Craig (1989) found that companies evolve through
three phases in the global market: initial entry, the local market expansion phase, and the global market rationalization
phase. The management orientation also appears to evolve during globalization. The orientation of the firm may be
described as ethnocentric, polycentric, or regiocentric/geocentric, depending on the viewpoint of management (Perlmutter,
1969; Wind, Douglas, & Perlmutter, 1973). In the present study, the term globalization is understood as a process in which
the firm (A) expands its markets geographically from the domestic continent to other continents and (B) develops towards
increasing global alignment of activities across countries. The measures of globalization based on geographical market
expansion have been found particularly useful in earlier studies conducted in SMOPEC countries and hence they are also
used in this study. They are the internationalization degree, that is the percentage of sales outside the home country, and
the globalization degree, that is the percentage of sales outside the home continent (Luostarinen and Gabrielsson, 2004).
During internationalization/globalization, companies need to decide on issues related to products, markets, and operations,
but they also need to decide on elements related to marketing such as advertising (De Mooij, 1994, pp. 470–485). Mastering
of international campaigns has become increasingly important during the internationalization/globalization process in
FMCG companies. It is expected that the stage of the company in the internationalization/globalization process and the
management orientation have an impact on the international advertising campaign processes of FMCG companies.
2.2. International advertising campaign process
Earlier research has proposed steps needed in advertising campaign planning (Davies, 1993; De Mooij, 1994; Parente,
VandenBergh, Barban, & Marra, 1996; Peebles et al., 1978). However, empirical research is very scarce in this field. Peebles
et al. (1978) propose a six-step framework. The model is based on the assumption that individual subsidiaries develop
proposals related to objectives, campaign concepts, creative work, testing, and budget, which are reviewed with the home
office for comment and final approval in relevant phases. De Mooij (1994, pp. 470–485) depicts a more detailed ten-step
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model starting with situation analysis and ending with controlling and evaluation of the campaign results. The decision
regarding whether to standardize or adapt an advertisement is addressed in the model by Peebles et al. (1978) and is seen
as a very important one. Based on this discussion, the campaign planning process can be seen to consist of the following
main steps: (1) marketing communication strategy and objectives setting, (2) budget decisions, (3) message creation and
determination of the standardization alternative, (4) media decisions, and (5) implementation and evaluation (see also
Davies, 1993; De Mooij, 1994, p. 472; Peebles et al., 1978). Advertising agencies are often selected for an extended period
and then used for a number of campaigns. Hence, agency selection is not shown as a separate step in the process.
2.3. Standardization versus adaptation in international advertising
The question whether to standardize international advertising across countries or to adapt it to countries is a highly
debated area in international marketing literature. Proponents of standardized advertising (Elinder, 1965; Fatt, 1967; Levitt,
1983) argue that global market segments are emerging and standardized advertising may be applied across countries,
bringing advertisers a number of benefits such as cost reduction in advertising planning and control, a consistent brand
image, and support for rapid global product launches. Opponents favoring a more localized approach (Britt, 1974; De Mooij,
1994, p. 203; Wind, 1986) argue that there are still differences among countries, including culture, consumer needs,
languages, legislation, media availability, and stage of country development. Some recent studies have recognized that
neither complete standardization nor adaptation of advertising is always necessary and the advertiser can select from a
continuum based on the situation (Quelch & Hoff, 1986). Research has found a number of factors affecting standardization
decisions (Buzzell, 1968; Jain, 1989). Some studies have also indicated that the international management orientation
(Wind et al., 1973) or export ratio (Sandler & Shani, 1992) may have an impact on the advertising standardization decision.
Peebles et al. (1977) have proposed an interesting perspective on advertising standardization by presenting two
alternatives for the company to consider: prototype standardization and pattern standardization. International companies
in multiple markets may use prototype standardization, which is a highly standardized approach consisting only of the
appropriate translations and possibly a few idiomatic changes. When the pattern standardization form is used, the
campaign, consisting of the overall theme and its individual components, is originally designed and developed for use in
multiple markets to provide uniformity in direction, but not necessarily in detail. This can be seen as a modified
standardization alternative in which certain elements are standardized while flexibility is provided for adaptation to
country differences. We may conclude that a company may choose from a standardized, modified, or an adapted (localized)
standardization alternative and several factors need to be considered.
2.4. The framework for international advertising campaign planning in FMCG companies and proposition development
The campaign planning process can be seen, as discussed, to consist of the following main steps (Davies, 1993; De Mooij,
1994, p. 472; Peebles et al., 1978): (1) marketing communication strategy and objectives setting, (2) budget decisions,
(3) message creation and determination of the standardization alternative, (4) media decisions, and (5) implementation
and evaluation. The factors affecting advertising campaign planning can be divided into (A) the external factors of the
company, (B) the internationalization stage of the company, (C) internal strategy, standardization levers, and resources, and
(D) factors related to the advertising agency. See Fig. 1 for a framework of the international advertising campaign planning
process in FMCG companies.
The external factors that can be expected to affect international campaign planning are international prospects,
competition, brand positioning, and similarity of cultural and consumer needs across countries (see e.g. De Mooij, 1994,
p. 471). As discussed earlier, there has been a long debate on whether it is feasible to standardize advertising and on what
factors impact this decision. As this issue is still unsettled, it merits further research. Earlier research has found that the
similarity of consumers and their needs across countries (Elinder, 1965; Levitt, 1983; Sorenson & Wiechmann, 1975;
Theodosiou & Leonidou, 2003) and other environmental factor such as competition and laws (Jain, 1989) favor a
standardized advertising campaign. It may be postulated as follows:
Proposition 1. The more similar the environment across the countries, the higher the degree of standardization of the
advertising campaign of an FMCG company.
Also, the internationalization and globalization stage of the company can be expected to have an impact (Douglas &
Craig, 1989; Luostarinen, 1979; Perlmutter, 1969). Earlier research has found that a higher export ratio increases the
advertising adaptation (Sandler & Shani, 1992). Research has also found that the global market development phase
(Douglas & Craig, 1989; Gabrielsson & Gabrielsson, 2004) and management orientation (Akaah, 1991; Jain, 1989; Wind
et al., 1973) may be expected to have an impact on marketing program standardization. In the initial entry phase the
ethnocentric orientation prevails and the internationalization degree is often low. The ethnocentric management
orientation favors a more HQ-directed standardized marketing promotion approach (Wind et al., 1973). For purposes of
entry, the company often identifies countries where minimal adaptation of marketing promotion strategies is required
without incurring incremental marketing cost other than those required to obtain distribution (Douglas & Craig, 1989). In
this phase, the company is expected to select a standardized advertising campaign approach due to simplicity and resource
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constraints. When the company moves to the international penetration (local expansion) phase, the management
orientation shifts towards a polycentric orientation and the internationalization degree starts to increase due to
penetration of international markets. The polycentric management orientation allows local country management freedom
in decision making and favors a country-specific promotion policy (Akaah, 1991; Wind et al., 1973). In each country,
attention is directed on making strategy modifications that will broaden the local market base (Douglas & Craig, 1989).
Thus it is expected that the company selects an adapted campaign approach in order to be able to penetrate local country
markets. When the company has moved to the global rationalization phase, it operates globally and a geocentric
management orientation that strikes a balance between decision making by HQ (seeking global integration) and local
country responsiveness becomes common. Promotional policy is developed worldwide to project a uniform image of the
company and its products (Wind et al., 1973). A considerable part of sales often comes from outside the home continent and
the globalization degree is thus relatively high. Global and regional market segments or target customers are idenitified.
Integration of marketing promotion across countries facilitates realization of potential economies of scale (Douglas & Craig,
1989). In line with earlier research (Akaah, 1991) it is expected that standardized advertising campaigns will become
increasingly important, thus favoring the modified or standardized campaign approach. This expected development in the
standardization of advertising campaigns is also supported by earlier research on the degree of control exerted by MNC HQ
over their subsidiaries and its impact on advertising standardization (Laroche et al., 2001). The following may be
postulated:
Proposition 2. In the initial international entry phase the FMCG company will select a standardized campaign approach, in
the international penetration phase an adapted campaign approach, and in the global rationalization phase a modified or a
standardized campaign approach.
Internal factors such as the company strategy and structure, standardization benefits and drawbacks, and available
resources are expected to influence international advertising campaign planning (De Mooij, 1994; Solberg, 2002).
Successful companies can be expected to integrate their brand building as part of their strategic plans. Clarifying the brand
identity and communicating consistently in innovative ways are particularly important. (Joachimsthaler & Aaker, 1997)
FMCG companies originating in small and open economies often lack budgets comparable to those of their global
competitors for creating visibility and differentiating with traditional mass media. It is therefore expected that these
companies use innovative creative strategies and implementations in their campaigns.
Proposition 3. Limited resources of FMCG companies from SMOPEC countries favor the use of non-traditional innovative
advertising campaigns and executions.
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International advertising campaign planning process
Marketing
communication
strategy and
objectives
Budget
decisions
Message
creation and
defining
standardization
alternative
Media
selection
Implementation
and
evaluation
- Similarity of cultures & consumerneeds
- Internationalprospects
- Competition and brand positioning
External environment
- Internationalmarketdevelopmentphaseof
the company /orientation
- Internationalization/ globalization degreeof
the company
Internationalization stage
of the company
- Nationalagency
- Internationalagency
Agency related factors
- Company strategyand structure
- Standardization benefits & hinders
- Available resources
Strategy, standardization levers &
resources
Fig. 1. Framework for the international campaign planning process in the fast-moving consumer goods companies.
P. Gabrielsson et al. / International Business Review 17 (2008) 714–728 717
Moreover, decisions on whether an international agency or a national agency is selected in a target market may be
expected to affect international campaign planning (Peebles et al., 1977, p. 574). Large international advertising agencies
with a global network of offices have the ability to design, implement, and manage global communications campaigns for
their customers (Tharp & Jeong, 2001). The more complicated the product and the greater the need for adapting to different
cultures, the greater the degree of local advertising expertise required (De Mooij, 1994, p. 457). The use of an international
advertising agency is expected to favor a standardized advertising campaign while a national advertising agency would
favor a more adapted advertising campaign. The following proposition may be postulated:
Proposition 4. The use of an international advertising agency in contrast to the service of national advertising agencies is
expected to favor a more standardized advertising campaign in an FMCG company.
3. Research methodology, case descriptions and analysis
3.1. The research method and justification
Multiple-case study methodology was selected for this research. The method selected is particularly appropriate as the
research questions are of the ‘‘how’’ and ‘‘why’’ types and the study focus on contemporary events (Yin, 2003, p. 5). The
evidence from multiple cases is often considered more compelling and the overall study more robust. Moreover, the
method is appropriate for this paper, as there has been very little research on international advertising campaigns in FMCG
companies in the area of high fashion clothes, cosmetics and spirits. The purpose of this research is a deep understanding of
selected cases in this very narrow field of research. The selected case study utilizes a holistic design, which means that a
single unit of analysis has been selected. (Yin, 2003, pp. 42–46) The multiple-case study design allows for logical
replication and the results altogether are expected to be more convincing. Four cases were selected. As the information
would have become saturated after this point, the number was seen to be adequate. The first case company is Nanso, which
is a Finnish high-fashion-design clothing company, the second case company is L-Fashion Group, which is a Finnish highdesign
sports clothing company, the third one is Lumene, a Finnish cosmetics company, and the fourth is Finlandia Vodka
Worldwide, a manufacturer and marketer of spirits originating from Finland. It was previously part of the Altia Group, but
is now part of the global Brown Forman conglomerate. These companies are interesting as they have international
operations and advertising and other promotion campaigns are important for their success.
The multiple-case study research design in this research used many of the principles presented by Yin (2003) and
Eisenhardt (1989) regarding selection of cases, data collection, and analysis. To select the case companies, the authors
familiarized themselves with the companies included in the Directory of the Association of Fashion Retailers in Finland
2006. The case companies for the studies were selected to meet the following criteria: (1) they meet the definition of FMCG
companies; (2) they are from the high-fashion clothing, cosmetic or spirits sectors and are Finnish companies by origin
(or business units of the companies studied that originated in Finland); (3) they have considerable international sales; over
20% of sales come from outside of Finland; and (4) they had international campaigns in 2005–2006. In addition to
advertising campaigns consisting of newspaper, magazines, radio, television, cinema, and outdoor advertisements, other
promotional campaigns such as point of sale and event-related campaigns were also included in the scope of the empirical
part. A summary of the background of the four selected case companies, including sector, sales turnover, and
internationalization degree can be found in Table 1.
In empirical data gathering the data triangulation method was applied by using multiple sources of evidence in all
cases. Most of the primary data for the analysis have been collected from in-depth interviews with the directors responsible
for marketing in the case companies. The interviews were recorded, transcribed, and a database was created to help
maintain the planned case study protocol and to ensure validity. The interviews were semi-structured, starting with open
questions. In addition, two researchers participated in all interviews and used an interview form as a supportive tool to
ensure that all relevant issues were covered. The interviews of the case companies were conducted at the end of 2006 and
during 2007. Moreover, company presentations, financial data, and news releases were used to provide additional support.
Samples of advertising used in different international markets were collected and analyzed from all companies. The validity
increases by applying multiple sources of evidence as this provides multiple measures of the same phenomenon.
(Yin, 2003) This produces a more complete, holistic, and contextual portrait of the object under study (Ghauri & Gronhaug,
2005, p. 222). Data displays proposed by Miles and Huberman (1994) were used to illustrate the findings.
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Table 1
Background of the selected case companies.
Company Field Year, turnover
(million euros)
Internationalization
degree (foreign sales %)
Nanso Group Clothing, tights, and socks designer and manufacturer 2006, 75.3 22.6
L-Fashion Group Clothing apparel and accessories designer and manufacturer 2005, 156.5 70 (Sport brands)
Lumene Group Skin care, color cosmetics, and hygiene products manufacturer 2005, 136 54
Finlandia Vodka Worldwide Spirits manufacturer 2005, 112.8 96–98
P. Gabrielsson et al. / International Business Review 17 (2008) 714–728718
3.2. Background of the case companies
3.2.1. Nanso Group
Nanso Group was established in 1921. Its sales revenue in 2006 totaled EUR 76 million, of which exports accounted for
22.6%. There were slightly more than 900 employees and with agents included nearly 1000. Nanso Group manufactures
over six million articles of clothing, over 14 million pairs of tights, and over 5.3 million pairs of socks a year. Brands like
Nanso, Lempivaate, Finnwear, Black Horse, Hyvon, Vogue, Amar, Norlyn, Elisabeth, KS socks, and Finnwear socks belong to
the conglomerate. Nanso Group spends around 1.5 million euros of its turnover on marketing.
The most international brand is Nanso, with a little over 40% of production going to foreign markets. Nanso Group
bought Black Horse and Finnwear in 2001 and Vogue Group in the summer of 2005. It started exports in the middle of the
1970s, first to Sweden and then to Germany. The first exports went through representatives who sold Nanso clothes to
Sweden. At the same time it started foreign marketing through special journals. Nanso Group sells its clothes straight to
retailers. Furthermore, it has a subsidiary and agents in Germany, which is the most important export country. Scandinavia
is basically a home market for the company. Hence, Sweden, Norway, and Denmark are important export countries;
Sweden is the most important. Denmark accounts for most of the Lempivaate brand clothing sales. Russia is the third area
where Nanso Group is currently focusing. Switzerland, the Netherlands, and Austria are also very important export
countries.
3.2.2. L-Fashion Group
L-Fashion Group specializes in the designing, marketing, and production of apparel and accessories. It consists of four
divisions, each operating in its own business areas, which are high-fashion clothing, sportswear, trading, and retailing. It is
one of the biggest clothing companies in Scandinavia. Its sales revenues amounted to 156.5 million euros in 2005.
The oldest and best-known brands of the group are Luhta, Rukka, Skila, IcePeak, Torstai, Ril’s, Story, Big-L, Beavers, and O.i.s.
The group has its own production in Finland, Portugal, Estonia, and Russia, and distribution centers in Finland, Portugal,
and Germany.
The company entered the international market at the end of the 1950s by exporting mainly to Russia and soon started
exporting to the western markets as well. At that time it did not have its own brands and sold mainly production capacity,
which was less costly than in Western Europe. Actual penetration of the international market took place in the mid 1960s.
At that time the company also started to focus on international markets with its own designs and Luhta brand. Luhta’s
unique design was well suited to the fashion trends of those days; the skiwear assortment in particular did well on the
international market.
In the early 1990s the collapse of trade with the Soviet Union, the new outdoor trend in sportswear, and the recession in
Finland hit sales of the Luhta brand hard and as the production of clothing shifted to the Far East, the number of personnel
decreased from 6000 to 3000. The company responded by buying a number of other well-known Finnish brands and thus
continued to increase its turnover. By then, the group was already exporting to over 40 countries. Luhta, Rukka, Skila, and
Ice Peak brands in particular are sold on the international market. Around 70% of the sales revenue from these sportswear
brands is sold to the international market, although mainly to European countries and Russia. Sales outside these areas
account for less than 10%. The most significant export countries are Germany, Russia, and France, followed by Italy, the
Netherlands, Spain, Austria, Switzerland, Slovakia, and the other Nordic countries. The company also sells to South Korea
and Japan, and will soon open some 20 shops in China in addition to the four existing shops; so sales outside Europe appear
to be increasing rapidly. Due to customs formalities, the company has sales subsidiaries in non-EU countries such as
Norway and Switzerland. The active sales companies are in Germany and China and one was started at the beginning of
2007 in Russia.
3.2.3. Lumene
Lumene Group develops, manufactures, markets, and sells high-quality skin care and color cosmetics as well as cleaning
and hygiene products. By combining nature, science, and technology, they promote daily well-being. The history of Lumene
Group dates back to 1948, when the pharmaceutical company Orion founded a company called Noiro (Orion backwards),
which was renamed Lumene in keeping with the new strategy adopted in February 2005. From the very beginning, the
cornerstone of their success has been innovative product development, pure ingredients, and knowledge of Nordic
conditions.
The cosmetics products were launched on the Nordic market in 1970. Lumene became the market leader in Finland in a
few years and was also received well in Sweden and Norway, the markets of which were handled by using importers at that
time. The Soviet market was entered at the turn of 1970 and 1980s by concluding a contract with a large local partner.
Further penetration of the international market led Lumene to establish its own subsidiaries in 2005 in Russia, and then
also in Estonia and Latvia. The latest subsidiary was established in Norway in 2006. Detergents and cleaning products were
added to the company’s product range in 1985. This became an important addition particularly for the Western markets
such as the USA, which was entered in 2006 by establishing a separate sales and manufacturing company. In 1997–1998,
sales activities were also started in Asia, and currently China is a growing export market, whereas operations in Japan have
ceased.
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To mention some key figures the personnel in 2005 was 1021 and the turnover 136 million euros. With respect to the
distribution of turnover, Finland accounts for 46%, Russia 23%, the United States 12%, and other markets 19%. The other
markets include for instance the Baltic States, Ukraine, Belarus, Hungary, and China. Hence, the company is indeed
international as over 50% of its revenue is generated in Finland. This limit was reached in 2000–2001 in revenue and in
1996–1997 in volume.
3.2.4. Finlandia Vodka Worldwide
The company’s history goes back to 1888, when an excellent spring was discovered in Rajama¨ki municipality. Since then
one of the most sophisticated distilleries in the world was established in the small village of Koskenkorva, which started to
produce Finlandia Vodka. In 1970, Finlandia Vodka was introduced in the US and Scandinavian duty-free market and the
firm first launched Premium Finlandia Vodka. In 1994 the first line extension was launched with the introduction of
Finlandia Arctic Cranberry Vodka. In 1996 the American Brown Forman Corporation started to import Finlandia Vodka
to the US. In 2000 it formed a joint venture, Finlandia Vodka Worldwide Ltd, with Altia Corporation by acquiring 45% of
Finlandia Vodka. The aim was to market and sell Finlandia Vodka. In 2002, Brown Forman acquired an additional 35% of
Finlandia Vodka and in 2004 the remaining 20%. Thus, Finlandia Vodka originated in Finland, although Finlandia Vodka
Worldwide Ltd now owns the trademark.
Finlandia has become the world’s sixth largest vodka brand. In the duty-free channel it is the third largest vodka brand.
By 2005, Finlandia was the No. 1 imported vodka in Poland, Puerto Rico, Bulgaria, Israel, Romania, Hungary, Ukraine,
and Belarus. Today Finlandia Vodka is 42nd of the top 100 premium spirits brands worldwide. It is the only product brand
under which it sells its product range consisting of 300 products. This product range includes six flavored vodkas
and Finlandia classic premium vodka, which is sold in three different strengths—50%, 40%, and 37.5%. The mother company
Brown Forman Corporation has 36 brands of which the three international ones are Jack Daniels, Saloon Comfort, and
Finlandia Vodka.
The market is divided into the local economy and duty-free markets. The company sells Finlandia Vodka to about
100 countries and in addition there are the duty-free markets; so altogether Finlandia Vodka Worldwide Ltd operates in
150 markets. Finlandia is a very global brand and the company regards this as an asset. After entering the US and
Scandinavia, the company expanded rapidly into eastern Central Europe, the former Soviet Union, and also expanded
strongly into other international markets. Its business has grown all over the world, primarily due to entrepreneurial zeal.
The entrepreneurs have been importing distributors, who have created huge growth for the company.
Sales are distributed so that 65–70% come from Europe, 20% from the US and 10% from the remaining countries. Exports
from Finland account for some 96–98%, including sales on passenger ferries. Only 2–3% stay in the domestic market. Poland
is the single biggest country for exports, accounting for 25% of total sales.
3.3. Cross-case analysis of the international campaign process
The main empirical results of the international campaign process are discussed next. A pattern in the steps of the
international campaign process could be found on the basis of a cross-case analysis as the campaign process included the
following steps in this order.
3.3.1. Marketing communication strategy and objectives phase
All the companies had set their marketing communication strategy and objectives in the first phase. In two of the
companies, the strategies and communication objectives were based on the brand in question (Nanso Group, L-Fashion
Group), while in Lumene Group the communication objectives were set as an integral part of the process. Finlandia Vodka
Worldwide belongs nowadays to the Brown Forman conglomerate and Finlandia Vodka Worldwide participates in its global
strategy process. The communication strategy is set for each campaign by Finlandia Vodka Worldwide and is approved by
the HQ in USA. An interesting finding was that as many as three companies were of the opinion that either the Finnish
origin or the arctic origin is an integral part of their marketing communication strategy (L-Fashion Group, Lumene Group,
and Finlandia Vodka Worldwide). L-Fashion group used the ‘‘I Love Finland’’ campaign, Lumene Group the arctic berry
ingredients in their campaign theme, and Finlandia Vodka the ‘‘Mid summer party’’ theme. This was commented on as
follows by one interviewee:
The clean arctic ingredients and technology create superior effectiveness for our products, and these are
differentiators compared with Procter & Gamble and other competitors. (Lumene Group)
Also the fourth case company (Nanso) used a sub-brand in Finnish language that links it with the identity of Finland
although it was not explicitly emphasized. See Table 2.
3.3.2. The budgeting decision phase
This was the second phase in the international campaign process in all of the case companies. The sales and campaign
objectives in the cases determined the amount budgeted for the campaign. The importance of the choice of partners at this
stage was stressed, as it would have a major impact on the budget. The amount invested in the marketing campaign varied
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Table 2
Summary of main findings on international campaign processes in the case companies.
Company Nanso Group L-Fashion Group Lumene Group Finlandia Vodka Worldwide Ltd
Marketing
communication
strategy and
objectives
 Strategies and communication objectives
set for each brand, not per campaign
 Special focus on new growth from
international markets and international
sales targets
 Strategies and communication
objectives set for each brand,
not per campaign
 Finnish origin emphasized
 Targeting with different brands
separate retail channels
 Marketing communication objectives
part of campaign process
 Brand content and arctic ingredients very
important
 Based on conglomerate’s strategy ideation process,
including European strategical ideation meetings
and a final global strategical ideation meeting
 Global campaign objectives and projects created
for Finlandia Vodka in Finland and approved in US
 Finnish country of origin emphasized
Budget decisions  The firm first considers the necessary
advertising and media agencies for the
campaign. Then it plans cost and budget
 Budget impacts message creation and
photographing scope
 Decisions depend on the brand
and the campaign objectives
 Before the decision how much
sales a campaign will generate
is estimated
 2–5% of sales, varying per
brand
 Budget decisions are based on sales and
campaign objectives, 15–20% of campaign
sales expectations, may be exceeded
depending on objectives
 Local budgets based on a program that allocates
budgets to each country
 Global budgets for campaign and concept
development based on research on market gaps
and global campaign targets of Finlandia
Message creation
and defining
standardization
alternative
 Advertising agency creates the message
based on brand/sub-brand objectives
 Rather standardized advertising material
across countries with photos as main
material, Russia more adapted
 Separate internal advertising
and communication
department to plan and create
each campaign
 Adapted campaigns across
countries based on retail
customer needs. Content,
language, and media differ
 Brand guideline given that advertising
agency must follow
 Campaign message is created with help
of advertising agency
 Rather standardized campaigns. Same
slogans and pictures, argumentation may
differ, and language is localized
 First feedback from countries, then global brief
given to campaign agency, which develops the
global campaign and its elements
 Modified campaigns across countries based on
standardized campaign concepts and elements, but
adapted by selection of different campaign
elements and media in countries
Media selection  Mainly trade marketing in events and
other trade publications. Together with
retail customers, advertising in
periodicals on smaller scale
 POS material such as poster and gifts to
retail customers in Germany
 The media related to point of
sales most important (POS
material), also billboards in
certain countries
 TV, radio, and magazines used
and only together with retail
customer
 International and local media used
 TV, periodicals, magazines, and
billboards used widely
 Media vary somewhat per country
 Media selected for each campaign
 Event marketing and trade press most important,
in some countries TV, radio, and print advertising
 Legislation limits media alternatives
Implementation
and evaluation
 Follows mainly sales development after
campaign implementation
 Implementation internally
with separate department
 Evaluation based on customer
feedback and by product sales
 Evaluates by following product sales and
margin and achieved brand recognition
 Follows how sales develop per activity, how many
customers try the products; customers are
interviewed by e-mail
P.Gabrielssonetal./InternationalBusinessReview17(2008)714–728721
for each company. L-fashion Group invested 2–5% in marketing campaigns depending on the brand while Lumene Group
invested 15–20% or more. It can be concluded that the more consumer targeted the campaigns are, including often TV and
printed advertising, the larger the budget required. Finlandia Worldwide seemed to use the most sophisticated process for
determining the optimal country budgets.
3.3.3. Message creation and defining the standardization phase
The key question in the message creation phase was whether the companies used an advertising/campaign agency. As
many as three case companies used agencies to develop the message (Nanso Group, Lumene Group, Finlandia Worldwide
Ltd), while one of the case companies (L-Fashion Group) used its own communication department to develop most of the
campaigns. The extent to which the company standardized the marketing campaigns across countries varied a lot. Nanso
Group and Lumene Group ran the most standardized campaigns. Interviewees at these companies commented on this as
follows:
The language in advertisements is certainly the same because there is no text in any advertising. There are only
pictures (Nanso Group)
The campaigns have to comply with the visual brand guide and be based on the picture bank’s campaign materials
and picture rights. Local aspects that require adaptation are language and media selection. (Lumene Group)
Finlandia Vodka Worldwide used a modified campaign approach across countries, while L-Fashion Group had selected a
highly adaptive approach. It was commented on as follows:
We have taken as a starting point that we do not standardize anything. We base all material on customer
requirements so that we can get into the shops if the customer sales potential is big enough. (L-Fashion Group)
3.3.4. Media selection phase
Media selection was an important step in the campaign process, although it varied considerably across companies. It
became evident that Lumene Group used the widest variety of media alternatives—TV, periodicals, magazines, and
billboards. Finlandia Vodka Worldwide used mainly event marketing, but also other media when legislation allowed.
L-Fashion used a great deal of POS marketing in co-operation with channel members and Nanso Group used mainly trade
marketing in events in addition to small scale advertising together with channel members. The conclusion here seems to be
that the higher the internationalization degree and the more consumer focused the marketing, the more varied the
portfolio of media used.
3.3.5. Implementation and evaluation phase
The campaign results were systematically evaluated in all of the companies. Finlandia Vodka Worldwide Ltd and
Lumene Group underwent the most extensive evaluation. Both L-Fashion Group and Nanso Group relied heavily on tracking
sales development. The more international and global the company is, the more sophisticated the systems used to evaluate
campaign results.
3.4. Cross-case analysis on factors affecting the international campaign process
The factors affecting the international campaign process were analyzed in the case companies. See Table 3 for a
summary of impacting factors.
3.4.1. External-environment-related factors
Analysis of the external environment shows that the international market potential, globalization impact, competition/
positioning, and similarity of cultural and consumer needs have an impact on international campaigns. One finding is that
globalization and a trend towards more similar cultures and consumer needs tend to increase the use of more standardized
campaigns. In two of the cases (Nanso Group, Lumene Group), the differences related to cultural and consumer needs were
very small across countries, which was also reflected in the use of more standardized campaign approaches. The following
comment was made by an executive at these companies:
The cultures in different target countries are enough similar to enable international marketing campaigns (Nanso
Group)
However, in the cases where there were still differences across countries in these factors, an adapted or modified
campaign approach was applied. Finlandia Vodka Worldwide still experiences strong national cultures in drinking habits
and L-Fashion Group still sees some differences in the cultural compatibility of products and available media across
countries. Another interesting finding was that there is also some evidence that market and customer size influence the
degree of adaptation. The smaller the customer or market size, the more limited the adaptation of the campaign material to
that particular country. For instance for large retail channels, L-Fashion Group often prepares tailor-made campaigns,
whereas for smaller customers standard campaigns are offered. Market size also seems to limit the budgets for campaigns
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Table 3
Factors impacting on international campaigns in the case companies.
Company Nanso Group L-Fashion Group Lumene Group Finlandia Vodka Worldwide
External environment (international
prospects, globalization impact,
competition, brand positioning, similarity
of culture &consumer needs, product
characteristics)
 Big potential drives to the international
markets, but due to small company size
it must co-operate with distribution in
advertising
 Globalization impacts towards more
similar markets, and the same
advertising materials used in many
countries
 Tough competition increases focus on
differentiated offerings and this
position is reflected in campaigns
 Similarity of cultures and tastes enable
standardized target segments and
campaign material
 Market potential and customer
size influence the degree of
campaign standardization
 Globalization contributes to
spread of retail chains over
borders allowing use of
standardized campaigns
 Customer tastes still differ but
increasing similarity in long term
means opportunities for
standardized campaign messages
 International prospects promising,
success requires focus on selected
markets and differentiation
 Globalization harmonizes
advertising communication across
the world
 Tough competition increases focus
on image and quality of products
and communication
 Similar needs of customer, some
differences in product references,
and benefits in campaigns
 Size of the target market limits the
campaign size that can be run in a
given country
 Legislation impacts campaign
content and media selection
 Premium positioning requires
global campaigns and guidelines
in campaigns
 Cultural differences in drinking
influences campaign content
Internationalization stage of the company
(number of foreign countries, geographical
spread, International experience,
international management orientation)
 Large number of export countries (16)
and limited campaign budget favor cooperative
marketing together with
retail channels and product-centered
campaigns
 Internationalization degree 22% and
globalization degree close to 0%
 Limited experience of international
business forces reliance on distributors
who emphasize products rather than
Nanso brand
 International channel expansion
justifies increasing investment in
advertising and gives bigger brand and
media visibility
 Ethnocentric management orientation
prevails, HQ determines campaigns in
Sweden. Polycentric towards Russia
 International penetration of a
large number of countries (40) has
meant different messages. Further
expansion done with consistent
message
 Internationalization degree 70%
and globalization degree
somewhat below 10%
 Long international experience
gives easy access to joint
campaign planning with
customers
 Polycentric management
orientation as countries and
customers impact campaign
decisions
 Number of countries has decreased
lately from 30 to 15–20, impacting
on more systematic campaign
process
 Internationalization degree 54%
and globalization degree over 10%
 Increased international business
experience means better
understanding of target segments,
sharpened communication, and
media selection
 Geocentric management
orientation, including brand
guidelines from HQ, but also local
decision making in campaigns
 Large number of countries (around
100 countries and in addition 50
tax-free markets)
 Internationalization degree
96–98% and globalization degree
over 30%
 Understanding of international
business and trends impacted on
the use of Finnish origin in
campaigns
 Geocentric management
orientation as foreign campaign
proposals are evaluated on equal
basis. US campaigns influenced by
parent company
Strategy, standardization levers and
resources (company strategy & structure,
standardization benefits & hinders,
available resources)
 Emphasis on brand strategy leads to
advertising of lead collections and
brands resulting in scale advantages in
international campaigns
 Scarce resources favor initial testing of
campaign concepts in Finland and later
introduction in international markets
 Divisions with different retail
target segments and brand
strategies influence campaign
messages
 Financial resources and personnel
in own communication
department influence campaigns
 Vision focuses attention on
strengthening key brands
 Relatively limited resources tend to
increase use of standardized
campaign process, prioritization of
campaigns, and avoidance of risky
campaigns
 Strategy and ownership means
that international campaigns
planned from Finland except those
in US
 The channel strategy of using
distributors decreases control of
campaigns
Agency-related factors (national agency
versus international, other)
 International advertising agencies bring
benefits from large agency networks
that know how to communicate and
execute campaigns
 Own communication department
handles almost all campaigns.
Enabled adapted campaigns, may
limit type & number of campaigns
 International advertising agency
creates main message and local
agencies do localization
 US advertising agency used for TV,
while local agencies for events
allow speed and local knowledge
P.Gabrielssonetal./InternationalBusinessReview17(2008)714–728723
run in a particular country; for instance Finlandia Vodka Worldwide has much larger campaigns in the US than in smaller
countries.
3.4.2. Internationalization and globalization stage of the company-related factors
Analysis of the internationalization stage of the company shows that management orientation, geographical spread,
number of foreign countries, and international experience have an impact on international campaign planning. The
international management orientation varied in the companies from ethnocentric (Nanso Group) to polycentric (L-Fashion
Group) and to geocentric (Lumene Group and Finlandia Vodka Worldwide). Two geographical market expansion measures
were used in this research: the internationalization degree (percentages of sales outside the home country) and the
globalization degree (percentages of sales outside the home continent/Europe; see Luostarinen & Gabrielsson, 2004).
It is evident that Nanso is still in the international entry phase. It was the least international company with 22%
internationalization degree and almost no sales outside Europe. The management orientation was ethnocentric as
marketing campaigns for countries were determined by HQ. Nanso used a standardized approach to campaign planning.
L-Fashion Group appeared to be in the international penetration phase as it had a high internationalization degree of
approximately 70%, but a low globalization degree (below 10%). It also applied a polycentric management orientation as the
campaigns were determined to a large extent by markets and customers. They applied an adapted campaign approach.
Lumene and Finlandia Vodka would seem to be approaching the global rationalization stage. They had high
internationalization degrees and increasing global presence. Lumene Group had 54% internationalization degree and over
10% globalization degree and Finlandia Vodka Worldwide a 96/98% internationalization degree and over 30% globalization
degree. Both these companies also applied a geocentric management orientation balancing between campaign guidelines
determined by HQ and country responsiveness. Finlandia Vodka Worldwide had selected a modified approach and Lumene
a standardized campaign approach.
It seems to hold that as the companies internationalize and penetrate deeper into countries, often within the home
continent, they have to increasingly adapt their campaigns to different countries. However, as they start to globalize to
other continents and the number of target countries increases, they must standardize their campaigns to a certain extent
and select a modified or a standardized campaign approach across countries.
One interesting finding is that as the number of countries increases rapidly the available budget that can be allocated
per country often diminishes. Here the trend seems to be towards planning campaigns together with the retail channel,
which is a less costly endeavor than separate campaigns (Nanso Group and L-Fashion Group). Limited international
experience also seemed to increase the importance of co-operating with distributors and retailers (Nanso Group). On the
other hand, long international business experience also made it easier to co-operate with channel members (L-Fashion
Group).
3.4.3. The strategy, standardization levers, and resource-related factors
The strategy, standardization levers, and resources also affect international campaigns. The impact of the company
strategy, brand strategy, or vision on the content of international campaigns, which could be seen in all the case companies,
was the most evident. The impact of standardization levers (the advantages of standardization) was typically emphasized
in those companies that had selected a standardized campaign approach (Nanso Group), whereas in firms using a more
adapted approach these were not mentioned. Both financial and personnel resources also influence the type and number of
campaigns. Due to limited budgets, all the case companies used new innovative campaign approaches. Arctic origin or
Finnish origin were an important part of their creative strategies. The companies that were not well known abroad could
differentiate themselves and gain more awareness through these campaigns. For example, L-Fashion Group used ‘‘I Love
Finland’’ as the main theme and Lumene used Finnish berries as a central element in their campaigns. Finlandia Vodka used
the association with Finland in the brand ‘‘Finlandia Vodka’’, in the campaign theme ‘‘midnight summer party’’ and by
emphasizing that the raw materials were from Finland. This was commented on by an executive as follows:
We have started experimental, self-experienced, activity event marketing type of global initiatives, such as the
Midnight Sun campaign where the idea is to bring the midnight sun to different countriesywe are inviting about
400 people from 40–60 countries to the main event in Finland. (Finlandia Vodka Worldwide)
Also, many of the case companies had started to apply the latest Internet technology in distributing pictures of their
advertisements to their partners at low cost. The media selection was heavily affected by the resource constraints.
Innovative new non-traditional low-cost media selections were sought. As discussed above, Finlandia Vodka Worldwide
used event marketing widely, L-Fashion used a great deal of POS marketing in co-operation with channel members, and
Nanso Group mainly used trade marketing in events. Lumene used a wider set of media alternatives, but also emphasized
the importance of focused selection of media.
3.4.4. Agency-related factors
Agency-related factors have an impact on international campaign processes. Three of the case companies used an
advertising agency (Nanso Group, Lumene Group, Finlandia Vodka Worldwide) and only one (L-Fashion Group) used its
own communication department. Nanso Group used an international advertising agency that also had an international
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network of agencies. Lumene Group used an international lead advertising agency, but used also national agencies for
localization of the campaign. Finlandia Vodka Worldwide used a US-based advertising agency for TV advertisements and
local agencies for organizing event marketing. L-Fashion’s use of its own communication department differed from that of
the other cases. This enabled fast and flexible adaptation of campaigns to customer needs, but may have limitations on the
type and number of campaigns.
3.5. Examination of the propositions
Next, the four propositions developed in the theoretical discussion will be examined based on the findings
of the empirical analysis. Proposition 1 asserted that the more similar the environment across the countries, the higher
the degree of standardization of the advertising campaign. Evidence was found in the cases that similar cultures, consumer
needs, and legislation across countries tend to promote more standardized international advertising campaigns. In the
cases that used rather standardized campaign approaches (Nanso Group and Lumene Group), it was evident that the
culture and consumer needs were to a great extent similar across countries as expected. Likewise in the cases that used
adapted or modified international campaigns (L-Fashion and Finlandia Vodka Worldwide) it was evident that there were
still differences with regard to either cultural issues or consumer needs. For instance, in the Finlandia Vodka case there
were still considerable differences in legislation across countries. We can thus conclude that Proposition 1 received support
in this research.
Proposition 2 stated that in its advertising campaigns, the FMCG company will select a standardized campaign approach
in the initial international entry phase, an adapted campaign approach in the international penetration phase, and a
modified or a standardized campaign approach in the global rationalization phase. The case analyses showed that the
market development phase, the management orientation, and the internationalization/globalization degree had an impact
as expected in all the cases (Nanso Group, L-Fashion Group, Lumene Group, and Finlandia Vodka Worldwide). The
companies were at different stages in their evolution. It was evident that Nanso was still in the international entry phase
(ethnocentric management orientation, low internationalization degree, and globalization degree nil) and as expected it
used a standardized approach for campaign planning. L-Fashion Group appeared to be in the international penetration
phase (polycentric management orientation, high internationalization degree, and low globalization degree) and it used an
adapted campaign approach. Both Lumene and Finlandia Vodka were seemingly approaching the global rationalization
stage (geocentric management orientation, high internationalization degrees, and increasing globalization degrees).
Finlandia Vodka Worldwide had selected a modified approach and Lumene a standardized campaign approach in line with
the proposition. Based on the above discussion it can be concluded that Proposition 2 received support.
Proposition 3 asserted that limited resources of FMCG companies from SMOPEC countries favor the use of nontraditional
innovative advertising campaigns and executions. The case analysis supported this proposition. All case
companies had used low-cost innovative campaigns driven by the resource limits. The use of arctic and Finnish origin in
the creative designs was an innovative way to build the brand identity by associations to Finland. This helped to build the
awareness of the advertised brand and offering, and to differentiate the offering although the budgets were limited.
Moreover, the innovative use of non-traditional low-cost media alternatives such as point of sales, trade marketing, and
event marketing was evident in the cases. Also, new Internet possibilities were used in the sharing of advertisement
material with partners and channel members. Hence, Proposition 3 received support in this research.
Proposition 4 asserted that the use of an international advertising agency in contrast to national advertising agencies
services is expected to favor a more standardized advertising campaign. The impact of the use of advertising agencies was
analyzed. Nanso Group had selected an international advertising agency and used standardized international advertising
campaigns as expected. Lumene Group used an international lead agency and national advertising agencies for localization,
which was partly in line with the use of rather standardized advertising campaigns. Finlandia Vodka Worldwide used a US
lead agency for television advertising and national agencies for event advertising, which is partly in line with the modified
advertising campaigns used. The L-Fashion Group did not use an advertising agency and did in-house work. As many of the
case companies used both a national and an international advertising agency, interpretation was more difficult, and it can
be concluded that Proposition 4 received only partial support and more research is needed for verification. The proposition
was supported to the extent that the use of an international advertising agency was found to influence the standardization
degree of the advertising campaigns. However, the proposition did not apply to cases in which both a local and an
international advertising agency or neither of them were used. When both a local and an international agency were used it
seemed to lead to either standardized or modified advertising campaigns based on the division of work between the two
types of agencies. This is an interesting future research area.
The support received in this study for particular propositions should be taken as indicative, as only four FMCG case
companies were examined in one SMOPEC country. Altogether the study relies on analytic generalization, in which a
particular set of results is generalized to broader theory, contrary to statistical generalization to population (Yin, 2003, p.
37). The study results are expected to be most relevant for FMCG companies originating from SMOPEC countries. However,
despite this conclusion, one should be cautious about generalization beyond the companies and the country studied. It is
up to future research to prove whether such generalization is possible.
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4. Summary and conclusion
A particularly interesting research question concerns how FMCG companies from small and open economies plan
international advertising campaigns and what factors affect this planning. The international campaign process for FMCG
companies was first developed on the basis of the literature (see e.g. Davies, 1993; De Mooij, 1994, pp. 470–485; Peebles et
al., 1978). Then a theoretical framework was developed to describe the main factors affecting the international campaign
process. Four international fast-moving consumer goods (FMCG) companies of Finnish origin were selected in the empirical
part and the multiple-case study research method was used to collect data and conduct analysis.
The theoretical contributions of this research can be seen from the framework and propositions developed. First, there
has been little research on the factors affecting the international advertising campaign process (see e.g. Taylor, 2005) and
this is particularly true of the factors related to the impact of the internationalization/globalization phase. Earlier research
in this area has merely recognized the impact of the export ratio (see e.g. Sandler & Shani, 1992) and presented somewhat
conflicting findings on the influence of management orientations (see e.g. Wind et al., 1973; Akaah, 1991). This research has
contributed to the theory by asserting the impact of internationalization and globalization on international advertising
campaigns and their standardization. During internationalization, often within the home continent, companies
increasingly adapt advertising campaigns to different countries, whereas globalization to other continents calls for
increased standardization across countries. Research on international advertising of companies from SMOPEC countries or
advertisement in these countries has been very limited with only a few exceptions (see e.g. Chung, 2005; Hoeken et al.,
2003; Shoham & Albaum, 1994; Solberg, 2002; Solberg & Durrieu, 2006). Earlier studies of Danish consumer companies
have found preliminary evidence of a relationship with internationalization degree and extent of advertising transference
(Shoham & Albaum, 1994). Also, a study of Norwegian companies found support for the contention that increased
international commitment leads to increased marketing control in the form of standardization and centralization (Solberg
& Durrieu, 2006). It has also been found that companies from New Zealand that have globalized and entered Europe used a
standardized promotion strategy in line with our findings, although the study in question did not investigate what
strategies these companies had used while they were still international (Chung, 2005). Hence, the present study has further
deepened understanding of development of advertising standardization and its antecedents. Secondly, this research
provides support from the FMCG field for earlier research (see e.g. Quelch & Hoff, 1986), according to which companies
need to see standardization as a continuum from adapted to standardized international advertising campaigns. Some parts
of the campaign (e.g. the campaign theme) may be highly standardized while adaptation is possible in other parts
(e.g., language, media selection). Thirdly, an interesting result is that FMCG companies from SMOPEC countries need to
overcome their resource limitations by using innovative non-traditional ways of planning and executing their international
campaigns (c.f. Joachimsthaler & Aaker, 1997). It was found that the companies had used the arctic origin and Finnish origin
as part of their campaign themes (c.f. Moon & Jain, 2002), and that they had selected non-mass-media alternatives and
used new opportunities offered by the Internet in the execution.
Several managerial implications for FMCG companies can be drawn from the results of this research. It has described the
stages in the international campaign process in the FMCG companies that the managers must decide on. In each phase
there is specific learning based on this study. Firstly, in marketing communication strategy, it appears to be especially
important to decide on a strategy that builds brand awareness instead of focusing only on product-based campaigns. The
brands and sub-brands should be named carefully so that they can be used in all markets. Use of associations with arctic or
Finnish origin in campaigns may be useful in building brand identity. Secondly, the more TV and print advertising is
included in consumer-focused marketing, the larger the budget should be for campaigns as consumer marketing is
especially expensive compared to trade marketing. Thirdly, the message creation phase varies greatly depending on
whether companies use an advertising agency or do their own campaign development. Moreover, companies need to
determine the degree of standardization in its international advertising campaigns. Fourthly, in addition to conventional
advertising campaigns, media alternatives such as TV, magazines, and billboards, companies also need to consider other
promotional types of campaigns at point of sales or events. These alternatives were even more common than conventional
advertising media among these FMCG companies. Finally, the importance of evaluating the campaign results should be
emphasized.
The generalizability of case study research is a much-debated area and therefore one should be cautious about
generalization beyond the case companies. The relatively few cases studied may be seen as a limitation. However, a
thorough analysis of the cases in this study will provide a deep understanding of international advertising campaigns and
the factors affecting the development. This will allow ‘‘naturalistic generalization’’ (see Stake, 2000), meaning that other
managers reading the results and understanding the similarities and differences of the case companies compared to their
own companies may take advantage of the findings and recommendations that suit their company also. Development of a
theoretical framework and propositions that were examined in real-life case companies will also allow theoretical
generalization, in other words generalization back to theory instead of generalization to a larger population (see Yin, 2003).
A number of suggestions for future studies may be identified. It would be interesting to examine the advertising
strategies of companies originating from SMOPEC countries that are culturally dissimilar to Finland such as Belgium and
the Netherlands and to investigate whether the results also hold in these countries. Moreover, it would be interesting to
extend the research from the international FMCG companies studied in this research to truly global FMCG companies and
to investigate their campaign processes. A comparison of international companies with truly global ones might bring
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interesting findings with regard to these processes. Also, it would be interesting to study whether the results of this study
also hold in other fields.
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