Reflection and Application Report (chapter 4)
The Impact of Cultural Differences on the Success of A Global Brand
Failure Examples
The Impact of Cultural Differences on the Success of A Global Brand
- Many brands operate on a global scale, such as Nike, Coca-Cola, McDonald’s, Gillette, Disney, Marlboro…etc.
- Many companies confuse the era of globalization with an era of homogenization.
- If they have had success with one product in one market, they have assumed they can have equal success in another.
- The cultural differences between countries can greatly affect the chances of success for a brand.
Pepsi in Taiwan
- Translation problems
- Pepsi’s US. Advertising slogan is “Come alive with the Pepsi generation.”
- Pepsi introduced the same ad slogan to Taiwan and it was translated as:
“Pepsi will bring your ancestors back from the dead.”
Schweppes Tonic Water in Italy
- Translation problems
- In Italy, a promotional campaign for Schweppes Tonic Water failed, because the product name was translated as:
“Schweppes Toilet Water”
Chevy Nova and Others
- Translation problems
- Chevy Nova in Latin America
Nova means “It doesn’t go” in Spanish.
- Toyota Fiera in Puerto Rico
Fiera translates to “ugly old woman”.
- Rolls-Royce’s ‘Silver Mist’ car
“Silver Animal Droppings” car in Germany.
- Ford Pinto car in Brazil
In Brazilian Portuguese slang, ‘pinto’ means
“small penis”.
International Product Strategy
- US-centered way of doing bus. doesn’t always work.
- Procter & Gamble introduced disposable diapers into Japanese market.
International Product Strategy
- Procter & Gamble’s disposable diapers in Japan:
Original strategy: develop new products & marketing strategy in US and then transfer them into other country markets.
Their US designed disposable diapers were too bulky for the tastes of Japanese customers.
Local competitor, Kao, developed a line of trim-fit diapers that quickly captured 30% of the market share (MS).
P & G re-modified its diapers and later had 30% of the MS.
P & G’s trim-fit diapers also became the best-seller in US market.
International Product Strategy
- Procter & Gamble’s Laundry detergent business in Japanese market.
- Introduced Cheer to Japan.
International Product Strategy
Procter & Gamble’s Laundry detergent in Japanese market.
- Cheer was developed in US and was promoted in Japan with the US marketing message:
Cheer works in all temperatures
& produces lots of rich suds.
- However, in Japan, people wash their clothes in cold water
make the ad campaign irrelevant.
- Japanese add fabric softeners to their water
reduces detergent’s sudsing action
So Cheer doesn’t suds as advertised.
International Product Strategy
Solution:
- P & G redeveloped a new product that works well with cold water, and redesigned the ad campaign.
- “Cheer in All Temperature”
Cheer is one of P&G’s best selling product in Japan.
The Impact of Cultural Differences on the Success of A Global Brand
Successful Examples
Businesses Attempt to Address Religious-Based Opportunities
- US Post Office sells stamps for Christmas, Chanukah, Kwanza, and other holidays.
- In Moscow - the religious theme park:
The visitors can dine on “Last Supper” meals.
- In Florida - Christian Foundation theme park.
- Coca-Cola and Pepsi held special promotions for Ramadan in Turkey.
- McDonald’s agreed to pay $12 m to settle a class-action suit filed by Hindus for not disclosing that beef flavorings were used in the French fry recipe.
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Consider the following examples:
When faculty walk among students and either walk close to, or approach a particular student. The tendency is for the student to get defensive or afraid – not like if the person approaching were a friend.
What is our 'standard speaking distance? In the us it is approximately at arms length, in other countries it is much closer - face to face (to watch our pupils). Location of office, use of office space, how long we keep people waiting, etc. Are all non-verbal cues that we use to judge peoples' relative importance. Depth of bow, how business cards are received and offered reflect relative importance in Japan.
Erving Goffman refers to Americans “civil inattention” which is the practice of looking directly at someone to acknowledge their existence, but then look away to indicate that the other person is not odd or a curiosity. We walk down a street and looking ahead see someone, look at their face for a moment or two, but as they get closer (assuming they are a stranger and not too attractive), we look away. This generally takes place at a distance of about eight feet.
Goffman, Erving. Behavior in public places; notes on the social organization of gatherings. New York: Free Press of Glencoe, 1963.
Culture is Dynamic
People live longer nowadays:
- People who retire at 60 or 65 can expect to live another 25 years or longer.
- Americans over age 55:
own 75% of all financial assets,
control over 80% of money invested in savings and loan associations,
own 67% of all shares sold in the stock market.
- Because older people are one of the largest, faster-growing populations that control a lot of wealth, firms are making more adaptations to products to cater to this group of rich consumers.
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Sociologists have studied many dimensions, of which these are but a few.
See, for example, Clyde Kluckhohn’s vast works:
Culture and behavior; collected essays. Edited by Richard Kluckhohn, New York: Free Press of Glencoe, 1962.
Mirror for man : the relation of anthropology to modern life, Tucson, AZ: University of Arizona Press, 1985.
Condon, John C. & Fathi S. Yousef, An introduction to intercultural communication, Indianapolis, IN: Bobbs-Merrill, 1975.
and of course, the studies conducted by Edward Twitchell Hall and colleagues, a few of which are:
The silent language, Garden City, NY: Doubleday, 1959.
The hidden dimension, Garden City, NY: Doubleday, 1966.
Understanding cultural differences, E. T. Hall and Mildred Reed Hall, Yarmouth, Me: Intercultural Press, 1990.
Culture is Dynamic
New products for older people:
OXO Good Grips utensils
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Sociologists have studied many dimensions, of which these are but a few.
See, for example, Clyde Kluckhohn’s vast works:
Culture and behavior; collected essays. Edited by Richard Kluckhohn, New York: Free Press of Glencoe, 1962.
Mirror for man : the relation of anthropology to modern life, Tucson, AZ: University of Arizona Press, 1985.
Condon, John C. & Fathi S. Yousef, An introduction to intercultural communication, Indianapolis, IN: Bobbs-Merrill, 1975.
and of course, the studies conducted by Edward Twitchell Hall and colleagues, a few of which are:
The silent language, Garden City, NY: Doubleday, 1959.
The hidden dimension, Garden City, NY: Doubleday, 1966.
Understanding cultural differences, E. T. Hall and Mildred Reed Hall, Yarmouth, Me: Intercultural Press, 1990.
Culture is Dynamic
NTT Raku Raku (“easy easy”) cell phone
- With large key pad
*
Sociologists have studied many dimensions, of which these are but a few.
See, for example, Clyde Kluckhohn’s vast works:
Culture and behavior; collected essays. Edited by Richard Kluckhohn, New York: Free Press of Glencoe, 1962.
Mirror for man : the relation of anthropology to modern life, Tucson, AZ: University of Arizona Press, 1985.
Condon, John C. & Fathi S. Yousef, An introduction to intercultural communication, Indianapolis, IN: Bobbs-Merrill, 1975.
and of course, the studies conducted by Edward Twitchell Hall and colleagues, a few of which are:
The silent language, Garden City, NY: Doubleday, 1959.
The hidden dimension, Garden City, NY: Doubleday, 1966.
Understanding cultural differences, E. T. Hall and Mildred Reed Hall, Yarmouth, Me: Intercultural Press, 1990.
Culture is Dynamic
Fiskars Soft Touch scissors
*
Sociologists have studied many dimensions, of which these are but a few.
See, for example, Clyde Kluckhohn’s vast works:
Culture and behavior; collected essays. Edited by Richard Kluckhohn, New York: Free Press of Glencoe, 1962.
Mirror for man : the relation of anthropology to modern life, Tucson, AZ: University of Arizona Press, 1985.
Condon, John C. & Fathi S. Yousef, An introduction to intercultural communication, Indianapolis, IN: Bobbs-Merrill, 1975.
and of course, the studies conducted by Edward Twitchell Hall and colleagues, a few of which are:
The silent language, Garden City, NY: Doubleday, 1959.
The hidden dimension, Garden City, NY: Doubleday, 1966.
Understanding cultural differences, E. T. Hall and Mildred Reed Hall, Yarmouth, Me: Intercultural Press, 1990.