tutorial: the cultural-social environment
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Tutorial aid. Considering the international cultural/social environmentTRANSCRIPT
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