Report I: The international cultural and social environment

International social and cultural environments:

• Trends•Affects• Issues•Decisions

Trends:

Trends: Global youth culture

Trends: Global tribes

Trends: Growing global ‘middle class’

Trends: International trading agreements

Trends: Global brands

1. Coca-Cola2. IBM3. Microsoft4. GE5. Nokia6. Toyota7. Intel8. McDonald’s9. Disney10.Google

• Research finds that global brands have:– Quality signal– Global myth– Social responsibility

Affects:

Affects: Political barriers, trade boycotts and

blockades

Affects: Technology Drivers

Affects: Cultural differences

Issues:

Communications:Global naming strategies

Translations and unintended meanings

Products:In the US and UK Kit-Kat is in one flavour.

In Japan customers like Kit-Kat in a wide range (now over 80) of often unexpected flavours including: green tea, soy sauce, salt watermelon and ginger ale.

In Japan the sound ‘kit kat’ also means good luck / congratulations, making the bar a popular gift

Management

Walmart fail in Germany:• Remote management • CEO spoke only English• ‘Hire & Fire’ culture• Failure to consult or

listen• Fundamental strategic

mistakes – retail style, competition, customer preferences

Organisation

• Degrees of centralisation

• Location and style of decision makers

• Family orientated businesses

• Expectations of individual initiative, innovation, consultation

Distribution & Buyer Behaviour

• Poor brand definition• Application of UK buying

behaviour expectations to US• Car shopping, not ‘passing

shopping’• Expect trial tasting,

discounts, promotions• Strong competition in low

cost convenience• No local retail / distribution

partner

Tesco fail in USA (and Korea)

Decisions:

Global

Local

Mixed

Alternative global marketing strategies

COMMUNICATON STRATEGY

STANDARDIZED COMMUNICATIONS

LOCALIZED COMMUNICATIONS

STANDARDIZED PRODUCT

Global strategy:Uniform Product/ Uniform Message

Mixed Strategy:Uniform Product/ Customized Message

LOCALIZED PRODUCT

Mixed strategy:Customized Product/ Uniform Message

Local Strategy:Customized Product/ Customized Message

Sources:Anon (2011) ‘Tesco’s mistakes in US – Not understanding the American Customer’. Case Studies Inc. Last accessed 18/11/12 at: http://www.casestudyinc.com/tescos-mistakes-in-us-not-understanding-the-american-customer

Arndt, a. and Knorr, A. (2003) ‘Why Did Wal-Mart Fail in Germany?’ Institute for World Economics and International Management. University of Bremen.

Cummings T.S. (no date) ‘Japan’s Strangest Kit Kat Flavors’ Weird Asia News. Last accessed 18/11/12 at: http://www.weirdasianews.com/2010/03/18/japans-strangest-kit-kat-flavors/

Geoghagan, T. (2011) ‘Why is Tesco Struggling in the US?’ BBC. Last accessed 18/11/12: http://www.bbc.co.uk/news/magazine-13190124

LPRodriguez (2012) ‘Psy Gangnam Style (Official Video)’ You Tube. Last accessed 23/11/12at: http://www.youtube.com/watch?v=mYPvAMrMzwI

Schiffman, L.G. and Kanuk L.L., (2010) ‘Customer Behaviour’ 10th ed. Pearson Educational