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					           Marketing in a Multicultural
                     World

                     Prof. Atul Tandan
                     Director
                     pat@mica.ac.in




06/07/07                 Essec/France
Global Business & Culture

   Buyer behavior and consumer needs are driven by
    cultural norms
   MNC managers deal with different cultural
    environments
   Global business deals with
       Consumers
       Strategic partners
       Distributors
       Competitors with different cultural mindsets
   Cultural heritage provides pride and self-esteem
   Foreign cultures also intrigue local cultures


06/07/07
                               Essec/France
Global Business & Culture

   Cultural environment matters for two main
    reasons
       Cultural differences force adaptations of
        marketing strategy
           Cultural blunders become costly for MNC
               Embarrassment
               Lost customers
               Legal consequences
               Missed opportunities
               Damage control
               Tarnished reputation

06/07/07
                                  Essec/France
Global Business & Culture

   Cultural analysis often pinpoints market
    opportunities
       Changes in cultural indicators lead to market opportunities
           300 million children in China
           157 million children in India (0-6 years)
               Spending power
               Pester power
               Act as a change agent
       To satisfy ignored cultural needs, brings competitive edge
           Japanese diaper makers steal the market share of P & G
            market by providing thinner diapers by meeting the desires of
            Japanese mothers

            Source: International Marketing by Rajgopal
06/07/07
                                    Essec/France
Cultural Norms Open New Product
Opportunities
   Asian Countries associated with skin
       White skin associated with positive values
           Beauty
           An upscale lifestyle
           Class
       Dark skin
           Hard labour
           Toil
   Unilever, Avon, & Beiersdorf

              Source: International Marketing by Rajgopal
06/07/07
                                   Essec/France
Culture-bound Products

   Food

   Beverages

   Clothing




06/07/07
                Essec/France
Bhutan: US $ 6 per week



    06/07/07
Source: marie claire January 2007   Essec/France
US $ 1.37 per week


   06/07/07
                     Essec/France
US $ 382 per week



   06/07/07
                    Essec/France
US $ 44 per week



   06/07/07
                   Essec/France
US $ 559 per week



  06/07/07
                    Essec/France
US $ 240 per week


    06/07/07
                    Essec/France
US $ 340 per week



   06/07/07
                    Essec/France
US $ 470 per week


   06/07/07
                    Essec/France
US $ 291 per week


   06/07/07
                    Essec/France
           Cultural Failures due to
                Material Life




06/07/07
                   Essec/France
Role of Culture in Product Design

   GM in China
   Ford in India
   American drivers put their children in the back but
    Chinese and Indian companies put their bosses
    there
    GM & Ford changed
       Seats & more legroom
       Air Conditioning
       Radio Control
       Suspension due to rough roads
       Engine size

06/07/07
                             Essec/France
  Culture
  and                        India
  Marketing
  Mix




06/07/07
              Essec/France
           Cultural Failures due to
           Pride and Self-esteem




06/07/07
                   Essec/France
Hallmark in France

   Greeting Cards Advantage
       You don‟t have to think about what to write
       Usually all written for you
       Sentimental poem
       Successful in UK, USA and other countries
   Reasons for Failure
       French people preferred to write
       Printed message did not appeal to the Gallic taste



Source: Brand failure by Matt Haig
06/07/07
                                 Essec/France
Adopting to Foreign Culture

   P & G mistakenly believed that what worked
    in the US would also find a market across the
    Rio Grande, or India.

   Mattel, on the other hand, mistakenly tried to
    cater to “Japanese” desires




    Source: International Marketing by Rajgopal
06/07/07
                                   Essec/France
Kellogg’s in India

                                               Since 1906 people have known
                                               Kellogg as a company they can
                                               rely on for great-tasting, high-
                                               quality foods. The world‟s leading
                                               producer of cereal and a leading
                                               producer of convenience foods,
                                               Kellogg Company‟s brands
                                               include Kellogg’s®, Keebler®,
                                               Pop-Tarts®, Eggo®, Cheez-It®,
                                               Club®, Nutri-Grain®, Rice
                                               Krispies®, All-Bran®, Special
                                               K®, Mini-Wheats®, Chips
                                               Deluxe®, Sandies®,
                                               Morningstar Farms®, Famous
                                               Amos®, and Murray®.

 Source:
06/07/07   Brand failure by Matt Haig
                                    Essec/France
Kellogg’s in India

   Reasons for failure
       Concept of breakfast cereal was new

       Indians start the day with a bowl of hot food

       People bought as a one-time novelty

       Product was “expensive”



06/07/07
                           Essec/France
           Cultural Failures due to
                 Language




06/07/07
                   Essec/France
     Pepsi in Taiwan
   PepsiCo, Inc. was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay

   Tropicana was acquired in 1998

   In 2001, PepsiCo merged with the Quaker Oats Company, creating the world’s fifth-largest food
    and beverage company, with 15 brands – each generating more than $1 billion in annual retail
    sales

   PepsiCo’s success is the result of superior products, high standards of performance,
    distinctive competitive strategies and the high level of integrity of our people.

   PepsiCo, Inc. is one of the world's largest food and beverage companies. The company's
    principal businesses include:

   Frito-Lay snacks

   Pepsi-Cola beverages

   Gatorade sports drinks

   Tropicana juices

   Quaker Foods


     06/07/07
        Source:   Brand failure by Matt Haig
                                           Essec/France
Pepsi in Taiwan

   Reasons for failure
       Same marketing campaign
       Same brand message in every country
       Taiwan Pepsi‟s message
           „Come alive with the Pepsi generation‟
                   (message translated as)
            „Pepsi will bring your ancestors back from the dead‟




 06/07/07
Source: Brand failure by Matt Haig
                                     Essec/France
    Automobile Failures
   Mitsubishi Pajero in Spain.
   Pajero is a slang for the word masturbator.

   General Motor‟s Chevy Nova in Latin America.
   Nova means “its doesn‟t go” in Spanish.

   Ford Pinto failed miserably in Brazil
   “Pinto” means “small penis” in Brazilian
    Portuguese slang.

   Toyota‟s Fiera proved controversial in Puerto
    Rico.
   Fiera translates to “ugly old woman”

06/07/07
   Source:   Brand failure by Matt Haig
                                    Essec/France
KFC in Hong Kong

   Founded by Corbin kentucky(1952), KFC is a
    subsidiary of Yum!
   KFC has more than 11,000 restaurants
    across 80 countries.
   Same slogan across the globe
            “finger lickin‟ good”
   In Hong Kong the same slogan translated as
    “eat your fingers off”

           http://www.kfc.com/about/responsibility.asp
06/07/07          http://en.wikipedia.org/wiki/KFC
                                 Essec/France
Coors Beer in Spain

   Coors brewing company traces its history
    back to 1847.
   Today Coors sells more than 32 million
    barrels of beer a year.
   Its one of the worlds top five brewers.
   Coors used the slogan
           “Turn it loose”
   Which translated in Spanish as
      “You will suffer from diarrhoea”
   Source:
06/07/07     Brand failure by Matt Haig
                                    Essec/France
America Airlines in Mexico

   American Airlines wanted to advertise their
    luxurious aspects of flying the business class
    Mexican customers.
   So they used the slogan
             “fly in leather”
   That translated to
           “Vuelo en Cuero”.
   “en couro” in Spanish was a slang for
       “in the nude”.

06/07/07
   Source:   Brand failure by Matt Haig
                                    Essec/France
Vicks in Germany

    Vicks Vaporub was created by a pharmacist
     Lunsford Richardson in 1800s.
    Vicks was sold to Procter & Gamble in 1985.
    Vicks failed in Germany to attract the
     customers.
    “V” is pronounced as “F” in German.
    Vicks sounded more like the German
     equivalent of the “F***” word


    Source: Brand failure by Matt Haig
06/07/07
                                   Essec/France
Parker Pens in Mexico

   Parker pens was founded in 1888 by George
    Safford Parker.
   The first fountain pen was patented in 1889.
   Today Parker pens are sold in more than 120
    countries.
   Parker was acquired by Gillette in 1993 and
    then sold to Newell Rubbermaid in 2000.



06/07/07   http://www.goldspot.com/parker_history.cfm
                             Essec/France
Parker Pens in Mexico (contd.)

   Parker intended to say
     “it wont leak in your pocket and
    embarrass you”
   But in spanish the ad meant
    “it wont leak in your pocket and impregnate
    you”
   The company confused “embarrass” with the
    Spanish verb “embrazar” or “to impregnate”.

 Source: Brand failure by Matt Haig
06/07/07
                                 Essec/France
Schweppes in Italy

   Jean Jacob Schweppes, the father of
    modern carbonated soft drinks
    industry, created Schweppes in 1783.
   In 1870 tonic water and ginger ale were
    introduced.
   In 1969 Schweppes Ltd merges with
    Cadbury Ltd.
   Currently sold in 160 markets across
    globe.

 http://www.cadburyschweppes.com/EN/Brands/About/Beverages/factsheet_schweppes.htm
06/07/07
                                           Essec/France
 http://uk.news.yahoo.com/rtrs/20070605/tbs-uk-cadbury-disposals-03c9bed.html
Schweppes in Italy (contd.)

   A promotional campaign for Schweppes
    tonic water in Italy read
      “Schweppes Tonic Water”
   But the brand name was translated to
      “Schweppes Toilet Water”
   The successive campaigns had to be
    revised.


Source: Brand failure by Matt Haig
06/07/07
                                     Essec/France
Electrolux in USA

   Electrolux is the world leader in producing
    kitchen and cleaning appliances.
   Mr. Axel Wenner-Gren started Electrolux
    back in 1900 and he launched his first
    vacuum cleaner named „Lux-1‟ in 1912.
   Annual Group sales were SEK 104 billion in
    2006 and a market leader in many individual
    product categories.


06/07/07
                      Essec/France
Electrolux in USA (contd.)
   This Scandinavian vacuum manufacturer
    came up with a line.

    “Nothing sucks like an Electrolux”

   Which raised quite a few eye brows.
   The product failed.
   The strap line had to be reworked upon




Source: Brand failure by Matt Haig
06/07/07
                                 Essec/France
Gerber in Africa

   Gerber began in the year 1928 on the
    production lines of Fremont Canning
    company by Daniel Gerber.
   The Gerber baby is perhaps the worlds most
    recognized baby face.
   Gerber is one of the most trusted
     names in the baby food segment.



06/07/07
                     Essec/France
Gerber in Africa (contd.)

   Similar packaging with the Gerber baby
    photograph
   Africans don‟t know how to read so
    packaging has pictures of the ingredients.
   The product miserably failed.
   So the packaging was changed which was
    followed by increase in the sales.



06/07/07
                      Essec/France
           Cultural Failures due to
                   Religion




06/07/07
                   Essec/France
Religion

   Religion taboos force companies to adapt
    their marketing program
       McDonald‟s India

           Do not sell hamburgers that contain beef to Hindu
            believers

           For respect to Muslims, there is no pork on the menu




      Source:
06/07/07        International Marketing by Rajgopal
                                    Essec/France
Aesthetics

      In Western societies, wedding gowns are
       usually white

                                     But

      In parts of Asia, white symbolizes peace
       and sorrow (chastity)


      Source: International Marketing by Rajgopal
06/07/07
                                  Essec/France
           Factors for Brand Acceptance




06/07/07
                      Essec/France
Global Aspects of successful Branding based on survey of the
Brandchannel.com

Consistency                                36.0%
Understanding of Customers/Target          18.2%
Message/Communication                      14.7%
Creative/Design/Brand ID                   12.8%
Relevance                                  12.4%
Differentiation/Uniqueness                 12.0%
Key Stakeholder Buy-In                     10.9%
Positioning                                9.7%
Clarity                                    8.9%
Connection to Customer/Target              8.9%
Awareness/Recall/Memorability              8.1%
Focus                                      7.0%
Authentic/Truthful/Honest/Accurate         7.0%
Source: The 2007 Brand Marketers Report Interbrand‟s
06/07/07
Annual Survey on Brands and Branding
                                    Essec/France
Global Aspects of successful Branding based on survey of the
Brandchannel.com

Leadership                        5.4%
Budget/Cost                       4.3%
Strategy                          3.5%
Product                           3.5%
Research                          3.1%
Innovation                        2.3%
Simplicity                        2.3%
Delivering on promises            2.3%
Public Relations                  1.6%
People                            0.8%
Marketing                         0.8%
Advertising                       0.4%
Other                             93.8%

06/07/07Total                     290.7%
                           Essec/France
             Successful Global Branding

                           &

           Understanding Cultural Diversity



06/07/07
                       Essec/France
Selected Global Brands
Apparel & Lifestyle
    Nike: Just Do It (Brand Value $ 10.2 bln)
           About 20,000 retailers in the U.S. (including Nike's own
            outlets and "Niketown" stores) and in approximately 110
            countries around the world


    Adidas: Impossible Is Nothing
                 (Brand Value $ 2.7 bln)
           The adidas Group is a global player which is
            represented in markets all over the world



    Source: 2007 Brandz Top 100 Most Powerful Brands by Milward Brown Optimor
06/07/07
                                 Essec/France
Nike – Just Do It (Pan Euro)




06/07/07
                Essec/France
Adidas – Impossible Is Nothing (USA)




06/07/07
                 Essec/France
Selected Global Brands
Apparel & Lifestyle
   Levi‟s (Brand Value 2.7 $ mln)
   Founded in 1853 by Bavarian immigrant Levi
    Strauss, Levi Strauss & Co. is one of the
    world's largest brand-name apparel
    marketers with sales in more than 110
    countries




06/07/07
                     Essec/France
Apparel - Levi’s (USA)




06/07/07
                Essec/France
Selected Global Brands
Beer
   Budweiser (Brand Value 5.5 $ mln)
   Bud Light (Brand Value 4.4 $ mln)
   Today, Anheuser-Busch produces the two
    best-selling beers in the world, Budweiser
    and Bud Light, operates 12 breweries in the
    United States and has operations around the
    globe. The timeline below highlights some
    key dates in our more than 150 year history.

06/07/07
                      Essec/France
Beer – Budweiser (USA)




06/07/07
               Essec/France
  Selected Global Brands
  Cars
     Toyota: Drive Your Dreams (Brand Value $ 33.5 bln)
           Toyota Motor Corporation (TMC) is one of the world‟s leading
            auto manufacturers, offering a full range of models. Global
            sales of its Toyota and Lexus brands, combined with those of
            Daihatsu and Hino, totaled 8.81 million units from January 1,
            2006 to December 31, 2006. Markets vehicles in more than
            170 countries.
     BMW: The Ultimate Driving Machine (Brand Value $
      25.7 bln)
           BMW Group activities worldwide are co-ordinated from the
            corporation's head office in Munich. A city landmark, the "four-
            cylinder" tower at the Olympic park is the nerve centre for an
            organisation which covers over 150 countries.




Source: 2007 Brandz Top 100 Most Powerful Brands by Milward Brown Optimor
  06/07/07
                                  Essec/France
Toyota – Moving Forward (India)




06/07/07
               Essec/France
 Selected Global Brands
 Beverage and Fast Food
    Nescafe: Open Up (Brand Value $ 4.3 bln )
        NESCAFÉ - being enjoyed all around the world... comforting,
         stimulating, relaxing - a cup of NESCAFÉ offers you pleasure
         wherever you are.

    McDonald‟s: I‟m Lovin‟ It (Brand Value $ 33.1 bln)
        McDonald‟s is the leading global foodservice retailer with
         more than 30,000 local restaurants serving 52 million people
         in more than 100 countries each day. More than 70% of
         McDonald's restaurants worldwide are owned and operated by
         independent local men and women.
         (Malaysian people’s rise in income, change in taste, liking
         towards American style & service)

Source: 2007 Brandz Top 100 Most Powerful Brands by Milward Brown Optimor
 06/07/07
                                 Essec/France
Nescafe – Open Up (Australia)




06/07/07
               Essec/France
 McDonald’s – I’m Lovin’ It (Germany)




Source: 2007 Brandz Top 100 Most Powerful Brands by Milward Brown Optimor
 06/07/07
                                 Essec/France
 Selected Global Brands
 Fast Food
    Pizza Hut: Gather Round the Good Stuff (Brand
     Value $ 2.3 bln)
           Pizza Hut franchisees exemplify the entrepreneurial
            spirit, which launched their system back in 1958.
            Through interest and initiative, the Pizza Hut system
            was able to develop new territories in the United States,
            Mexico, South America, Australia, Europe, the Far East
            and Africa. Today, Pizza Hut operates in more than 100
            countries and territories throughout the world.




Source: 2007 Brandz Top 100 Most Powerful Brands by Milward Brown Optimor
 06/07/07
                                 Essec/France
 Selected Global Brands
 Fast Food
    Citi: The Citi Never Sleeps
    (Brand Value $ 33.7 bln)




    HSBC: The worlds Local Bank
        (Brand Value $ 17.4 bln)
          HSBC's global markets business is one of the largest of its
            kind in the world. It combines sophisticated 24-hour global
            coverage with a detailed knowledge of local markets. Services
            are offered both online and offline, through a network of 87
            treasury sites in more than 60 countries and territories
            worldwide.

Source: 2007 Brandz Top 100 Most Powerful Brands by Milward Brown Optimor
 06/07/07
                                   Essec/France
Citi – The Citi Never Sleeps (Asia)




06/07/07
                 Essec/France
HSBC – The Worlds Local Bank (India)




06/07/07
                Essec/France
Selected Global Brands
Mobile
   Nokia: Life Goes Mobile! (Brand Value $ 301 bln)
           Today, Nokia is still the world‟s number one manufacturer of
            mobile phones, and one of the leading makers of mobile
            networks. Nokia estimates that annual revenues from mobile
            services will increase globally by more than 40 percent
            between 2005 and 2010, from €472bn to €673bn.


   Sony Ericsson
           Sony Ericsson Mobile Communications is a global provider of
            mobile multimedia devices, including feature-rich phones and
            accessories, PC cards and M2M solutions in more than 77
            countries.

  Source:
06/07/07    2007 Brandz Top 100 Most Powerful Brands by Milward Brown Optimor
                                  Essec/France
Nokia – Life Goes Mobile (Intn’l)




06/07/07
                Essec/France
Sony Ericsson (Intn’l)




06/07/07
                Essec/France
  Selected Global Brands
  Motor Fuel
     BP: Beyond Petroleum (Brand Value $ 5.9 bln)
           BP is one of the world's largest energy companies,
            providing its customers with fuel for transportation,
            energy for heat and light, retail services and
            petrochemicals products for everyday items in 65
            countries


     Shell: Go Further With Shell Oil (Brand Value $ 4.6
      bln)
           Shell is a global group of energy and petrochemical
            companies. It is active in more than 130 countries and
            territories


  06/07/07
Source: 2007 Brandz Top 100 Most Powerful Brands by Milward Brown Optimor
                                  Essec/France
Shell – Go Further With Shell Oil (UK)




06/07/07
                 Essec/France
 Selected Global Brands
  Personal Care
    Gillette: The Best a Man Can Get (Brand
     Value $ 17.9 bln)
          The P&G community consists of over 135,000
           employees working in over 80 countries worldwide.
           What began as a small, family-operated soap and
           candle company now provides products and services of
           superior quality and value to consumers in over 180
           countries.




Source: 2007 Brandz Top 100 Most Powerful Brands by Milward Brown Optimor
 06/07/07
                                 Essec/France
   Selected Global Brands
    Soft Drink
      Coca Cola: The Coke Side of Life (Brand Value $
       34.9 bln)
             Today, The Coca-Cola Company is the largest beverage
              company with the most extensive distribution system in the
              world. The Coca-Cola Company operates in more than 200
              countries.


      Pepsi Cola: More Happy (Brand Value $m 9.6 bln)
             The company consists of Frito-Lay North America, PepsiCo
              Beverages North America, PepsiCo International and Quaker
              Foods North America. PepsiCo brands are available in nearly
              200 countries and territories.

Source: 2007 Brandz Top 100 Most Powerful Brands by Milward Brown Optimor
   06/07/07
                                   Essec/France
Coca Cola – The Coke Side of Life
(Singapore)




06/07/07
                 Essec/France
Pepsi – More Happy (India)




06/07/07
               Essec/France
  Selected Global Brands
  Water
     Aquafina: Pure Water. Perfect Taste (Brand Value $
      680 mln)
           PepsiCo, Inc. is one of the world's largest food and beverage
            companies.

           Aquafina uses PepsiCo's own purification system, which it calls
            HydRO-7. PepsiCo states in marketing material that this system
            removes substances that may be in other brands of bottled
            water.




Source: 2007 Brandz Top 100 Most Powerful Brands by Milward Brown Optimor
  06/07/07
                                  Essec/France
Water – Aquafina (USA)




06/07/07
               Essec/France
  Selected Global Brands
  Retail
     Wal-Mart: Always low prices! (Brand Value $ 36.8
      bln)
            Today, Sam´s gamble is a global company with more than 1.8
             million associates worldwide and nearly 6,500 stores and
             wholesale clubs across 14 countries.




Source: 2007 Brandz Top 100 Most Powerful Brands by Milward Brown Optimor
  06/07/07
                                  Essec/France
  Selected Global Brands
  Technology
     Google: Don’t Be Evil (Brand Value $ 66.4 bln)
           Google. COM is one of the 5 most popular sites on the
            Internet and is used around the world by millions of people.
           Google is the #1 search engine in the Argentina, Australia,
            Belgium, Brazil, Canada, Denmark, France, Germany, India,
            Italy, Mexico, Spain, Sweden, Switzerland, U.K., U.S.
            (Nielsen//NetRatings 6/05, based on total number of unique
            visitors)
           Global unique users per month: 380 million
            (Nielsen/NetRatings 8/05)
           112 international domains
           Global audience: More than 50 percent of Google.com traffic
            is from outside the U.S.




Source: 2007 Brandz Top 100 Most Powerful Brands by Milward Brown Optimor
  06/07/07
                                 Essec/France
Selected Global Brands
Technology
   Microsoft: Your Potential. Our Passion (Brand Value $
    54.9 bln)
          Founded in 1975, Microsoft (Nasdaq "MSFT") is the
           worldwide (79 countries) leader in software, services
           and solutions that help people and businesses realize
           their full potential.
          MS-DOS, .NET, Office XP, 2007 Office system,
           Windows, Windows Server, Windows 3.0, Windows 95,
           Windows 98, Windows 2000, Windows XP, and
           Windows Vista are registered trademarks of Microsoft
           Corporation. Other product and company names
           mentioned herein may be the trademarks of their
           respective owners.
Source: 2007 Brandz Top 100 Most Powerful Brands by Milward Brown Optimor
06/07/07
                                Essec/France
Microsoft – Your Potential Our Passion
(Pan Asia)




06/07/07
                 Essec/France
            Thank You


           E-mail: pat@mica.ac.in




06/07/07
                Essec/France

				
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