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Introduction to the Problem and Guiding Research Question
As a business major at Bowling Green State University, I have been exposed to a wide
range of elements of the business world through the courses I am required to take. These courses
cover a broad range of subjects, including accounting, finance, information systems, supply
chain management, marketing, and international business just to name a few. Through these
courses, I have developed a more profound understanding of the material and used my critical
thinking skills to identify connections between the various disciplines. My interest in the field of
International Business was piqued, and I decided to specialize in this area.
Thanks to the Honors College and the Bowling Green State University Schmidthorst
College of Business, I had the incredible opportunity to study abroad in Strasbourg, France, for
the entire 2021-2022 academic year. During my time in Strasbourg, I was able to delve into my
newfound passion for international business and gain a deeper understanding of the discipline.
The experience was unforgettable and exceeded my expectations in every way.
Living in Strasbourg gave me the chance to immerse myself in the French culture and
explore the cultural differences not only between France and the United States but also
throughout Europe. I traveled extensively throughout the continent, experiencing firsthand the
nuances and diversity of each country's culture, which broadened my worldview.
While living abroad, I found it challenging being away from home, but familiar
American chain restaurants such as Kentucky Fried Chicken, McDonald's, Burger King, and
Five Guys provided a sense of comfort and familiarity. However, I also noticed distinct
differences in the way these companies marketed their brand and the food options available
compared to their American locations. This made me curious about why these big-name chains
modify their already successful business models to tailor to the international market. Although I
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am not specializing in marketing, I found the intersection of my specialization in international
business and marketing rather intriguing. After returning to Bowling Green State University, I
made it a priority to dive deeper into the subject matter. Before I could create a research
question, I recognized the need to fully comprehend the significance of marketing in a global
setting.
Marketing plays a crucial role in promoting businesses worldwide, by satisfying needs,
raising customer awareness and driving sales of products and services. Despite being just one
aspect of a broader business plan, marketing has a significant impact on a company's
profitability. Marketing activities include a range of strategies, such as promotion, sales
management, pricing, financial analysis, and product distribution, making it an integral part of a
company's success. Given its importance, businesses invest heavily in creating effective
marketing branding that captures the attention of a wider audience, with the aim of generating
more revenue. Depending on the company, we even see modifications in their marketing strategy
to target specific locations around the globe. Companies are willing to invest significantly in this
process, hoping to expand their organizations' reach and engagement. In doing so, they also open
themselves up to economic diversification, which can bring many benefits.
Through my passion for international business and newfound interest in marketing, I am
conducting further research on the impact of cultural adaptation of marketing campaigns on
consumer behavior in different countries. To do so I must conduct a literature review on the
challenges international marketers face in implementing global marketing campaigns in regions
with diverse consumer behavior. By evaluating these challenges, I aim to gain a comprehensive
understanding of the requirements for successfully running a global marketing campaign. To
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answer my research question, I will examine the globalization attempts and marketing campaigns
of two American-based companies.
My research question, "How does cultural adaptation of marketing campaigns impact
consumer behavior in different countries?" is crucial in understanding how cultural differences
affect consumer behavior, especially in designing effective international marketing campaigns.
Cultural adaptation involves modifying a marketing campaign to align with the cultural
norms and values of a specific country or region. It is essential because consumers' behaviors,
attitudes, and values are shaped by their culture, and understanding these differences is key to
reaching and connecting with the target audience in different countries. Cultural adaptation can
involve changing language, imagery, or symbols in a campaign to reflect local customs and
traditions or modifying the product or service to better suit local preferences and needs.
The impact of cultural adaptation on consumer behavior can vary based on the nature of
the campaign and the cultural context in which it is deployed. Effective cultural adaptation can
make a campaign more relatable, resonant, and appealing to the local audience, leading to
increased engagement and sales. On the other hand, failing to adapt to local cultural norms and
values can result in a campaign that is perceived as insensitive or inappropriate, leading to
negative consumer attitudes and reduced sales.
Review of Literature
Assessing and adapting a marketing plan for international markets is critical to evaluate
the multiple challenges associated with international marketing and research that has already
been conducted. Launching an international marketing campaign involves several obstacles that
businesses need to overcome, such as financial limitations, language barriers, cultural
discrepancies, and legal and regulatory matters. By analyzing these challenges, we can gain
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insights into the complex choices that business leaders worldwide must make. In the following
sections, I will discuss each issue and elaborate on how it impacts a company's marketing efforts.
Cultural Understanding
International marketing involves promoting products or services to meet the needs of
consumers in diverse countries with varying cultures, beliefs, and values. As a result, cultural
challenges can significantly impact the effectiveness of international marketing campaigns.
Apart from language barriers, which were discussed in the previous section, several other factors
play a crucial role in cultural understanding. One such factor is the variation in cultural norms
and values across different countries, which can affect consumer behavior. “Learning about other
cultures helps us understand different perspectives within the world in which we live. It helps
dispel negative stereotypes and personal biases about different groups. In addition, cultural
diversity helps us recognize and respect “ways of being” that are not necessarily our own. It is
crucial to understand these differences to ensure that marketing campaigns align product and
customer needs with cultural beliefs and values and do not offend or appear insensitive “(What
Does “Culturally Diverse” Mean?,n.d.). Another factor that impacts cultural understanding is the
diverse marketing regulations in different countries. These regulations can significantly impact
campaign strategy and content, and companies must ensure that their marketing campaigns
comply with local regulations and laws. I will go into more details on legal and regulatory issues
in the next section. Communication styles are another critical factor that affects cultural
understanding. Communication preferences and styles vary across cultures. For instance, some
cultures prefer direct communication, while others prefer indirect communication.
Understanding these differences is crucial to tailor communication messages and strategies that
resonate with the target audience. Think Cultural Health breaks down various communication
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styles into various categories such as tone, volume, speed of speech, eye contact, and use of
pauses and silence. Once broken down into categories we see that “Loud and expressive speech
is often more common in African American, Caribbean, Latino, an Arab culture”
(Communication styles - think cultural health 2014). Another good example of this is “Direct eye
contact is highly valued,
both when speaking and listening, by many white Americans. Direct eye contact is considered
rude in some Asian cultures” (Communication styles - think cultural health 2014). Market
saturation is yet another factor that affects cultural understanding. The level of market saturation
and competition varies significantly across different markets, and companies must be aware of
these differences to develop effective marketing strategies. In conclusion, cultural challenges
pose a critical consideration when developing international marketing campaigns. Companies
can create campaigns that resonate with their target audience, build brand loyalty, and drive sales
by understanding and addressing these challenges.
Language Barrier
Language barriers can be a major challenge in marketing, particularly when trying to
reach audiences in regions where different languages are spoken. Although numerous countries
around the world are multilingual, the interpretation of the message can still be misunderstood.
“In certain situations, however, it is almost impossible to translate a given meaning accurately
and fully into a second language” (Gillespie & Swan, 2022). Effective communication is
essential in any industry, and when language becomes a barrier, misunderstandings can arise,
potentially damaging the consumers' perception of the company.
Several factors can influence how consumers interpret marketing messages. One of the
most significant factors is translation errors, which can lead to misunderstandings, confusion,
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and even offense to the target audience if marketing materials are not translated accurately.
“Brand names can be particularly affected by language, because they are not normally translated
but are merely transliterated” (Gillespie & Swan, 2022). Marketers also face challenges with
idiomatic expressions, as these phrases may not have direct translations and can be challenging
to understand or have different meanings in different languages. Additionally, tone and style play
a critical role in marketing campaigns, as they can vary greatly between different languages,
making it challenging to find the right tone and style that resonates with the target audience.
“Recent research indicates that recent grads and early-career professionals tend to use “business
speak” to build rapport with colleagues at work, while Global English is more often used to forge
international connections” (Bullock & Sánchez, 2021). Global English refers to simplified
English focused on clarity. According to Bullock & Sanchez global English is “a style of written
and spoken English that’s been optimized for clearer and accurate communication on global
teams” (Bullock & Sánchez, 2021). Finally, local dialects can be another hurdle for marketers, as
there may be many different local dialects in some countries, which can be challenging to
understand or translate correctly.
Financial Challenges
Effective budgeting is crucial when conducting an international marketing campaign as
there are various costs involved that can pose significant problems for the company. One such
challenge is managing currency fluctuations, which can have a significant impact on campaign
costs. “The main objectives of managing foreign exchange risk are found to be minimization of
fluctuation in earnings and seeking certainty of cashflows” (Marshall, 2000). Failure to
effectively manage these fluctuations can result in unexpected costs that can adversely affect the
campaign's success. Additionally, varying customs duties and taxes in different countries can
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also impact campaign costs, making it essential for companies to factor these expenses into their
budgeting process. For companies operating out of the United States “The statutory tax rate
appears a better determinant of income shifting than effective tax rates; and tariffs have the
largest impact increasing sales in the local market while lower taxes more effectively promote
exports to third markets” (Grubert & Mutti, 1991). Shipping and logistics costs can also be a
significant challenge for international marketing campaigns, as transporting materials and
products across borders can be costly due to transportation expenses, tariffs, and other fees.
“Total logistics costs often represent a large portion of total supply chain costs, especially when
the supply chain is extended to the global market. As more organizations are outsourcing their
products or services to global suppliers, it becomes increasingly critical to understand and
evaluate the various logistics cost components in order to assure the profit margin” (Zeng &
Rossetti, 2003). As a result, companies need to weigh the costs and benefits of conducting an
international marketing campaign and determine if it is a worthwhile investment for their
business.
Legal and Regulatory Issues
International marketing involves promoting and selling products or services across
national borders, which can present a range of legal and regulatory challenges that vary from one
country to another. Intellectual property laws are a major concern, with different countries
having varying laws on trademarks, copyrights, and patents. “Your intellectual property is a
valuable intangible asset that should be protected to enhance your competitive advantage in the
marketplace” (Protect intellectual property n.d.). It is crucial for international marketers to ensure
that their products and advertising materials comply with these laws in each country where they
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do business. Additionally, companies may face data protection and privacy laws, anti-bribery
and anti-corruption laws, and product safety and labeling laws, which must be navigated
carefully. Advertising regulations, including laws governing false or misleading advertising,
comparative advertising, and advertising to children, are also important considerations. In the US
for instance “Companies must support their advertising claims with solid proof. This is
especially true for businesses that market food, over-the-counter drugs, dietary supplements,
contact lenses, and other health-related products” (Vedova & Technology, 2023). It is also
important that “If you advertise directly to children or market kid-related products to their
parents, it’s important to comply with truth-in-advertising standards” (Vedova & Technology,
2023). Tariffs and trade barriers, foreign exchange regulations, and consumer protection laws are
other factors that international marketers must take into account when conducting business
across borders. Ensuring compliance with these laws is essential for success in international
markets.
Methods Used to Solve the Problem
Analyzing the effectiveness of international marketing campaigns requires a
comprehensive approach that combines both secondary research and existing data to draw
accurate conclusions. In this case, I chose to evaluate McDonald's and Burger King, two popular
fast-food brands, and their unique approaches to international marketing to better understand the
impact of cultural adaptation on consumer behavior in European countries, specifically, the
United Kingdom. The United Kingdom is comprised of four countries (England, Scotland,
Wales, and Northern Ireland) that all have their own unique identity. I selected the United
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Kingdom as my focus due to its diverse population, significant contributions to global culture,
strong economy, and unique political systems.
Existing data on McDonald's and Burger King's international marketing strategies and
campaigns provide valuable insights into their approaches and outcomes. This includes
examining their marketing campaigns in various countries, analyzing their advertisements, social
media presence, and consumer engagement, and studying their sales and revenue data. By
analyzing this data, I can identify patterns and trends that highlight how these brands have
adapted their marketing campaigns to different cultural contexts and how it has impacted
consumer behavior.
Comparing McDonald's and Burger King's international marketing strategies provides a
valuable case study to explore the impact of cultural adaptation on consumer behavior. Both
brands are similar in terms of their fast-food offerings, but they have distinct marketing
approaches in different countries. For example, McDonald's is known for its localized marketing
campaigns that incorporate local cultural elements, whereas Burger King often follows a
standardized global marketing approach with minimal cultural adaptation. By analyzing and
contrasting these approaches, I can draw conclusions about the effectiveness of cultural
adaptation in international marketing campaigns and its impact on consumer behavior.
Results
After conducting an in-depth analysis of McDonald's and Burger King's
international marketing strategies, it is evident that these two brands have employed distinct
approaches to cultural adaptation, which have had diverse effects on consumer behavior in
different countries.
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McDonalds Findings
McDonald's, known for its localized marketing campaigns, has placed a strong emphasis
on adapting its marketing messages to local cultural contexts. This includes incorporating local
language, customs, traditions, and food preferences in its advertisements and promotions. For
example, McDonald's has introduced numerous region-specific menu items such as the "McAloo
Tikki" burger in India, "Teriyaki Burger" in Japan, and "Poutine" in Canada, catering to local
tastes. This localized approach has helped McDonald's create a sense of familiarity and relevance
with local consumers, leading to increased consumer engagement and brand loyalty as seen in
figure 1. McDonald's localized marketing campaigns have been successful in creating a strong
brand image and a loyal customer base in many countries. The brand has often been perceived as
more culturally sensitive and relevant to local consumers, leading to higher brand preference and
increased sales as seen in figure 2. Although McDonald’s localization efforts have mainly been
successful, it is important to note that excessive localization efforts may lead to inconsistency in
brand image, diluting the global brand identity. Additionally, localization efforts may require
significant adjustments to the supply chain, menu offerings, and operational processes to
accommodate local preferences and requirements.
Burger King Findings
Burger King has largely followed a standardized global marketing approach with
minimal cultural adaptation. Its marketing campaigns and menu offerings are often consistent
across different countries, with limited customization to local cultural nuances. While this
approach ensures consistency in brand messaging and operations, it may not always resonate
well with local consumers who have diverse preferences and expectations. This lack of
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localization may result in reduced consumer engagement and lower brand relevance in certain
markets as seen in figure 3. Burger King's standardized global marketing approach may not
always have the same level of impact on consumer behavior. In some cases, it may struggle to
connect with local consumers, resulting in lower brand awareness, reduced consumer
engagement, and potentially lower sales as seen in figure 4.
Although it seems like a standardized global marketing approach with minimal cultural
adaptation may not always be a good thing, there still are benefits associated with this approach.
A standardized approach ensures that the brand image, messaging, and positioning are consistent
across different markets. This helps in building a strong global brand identity and creating brand
equity. Standardizing marketing strategies and tactics globally can also result in numerous cost
efficiencies. Through standardized marketing strategies we see that there is no need for extensive
customization of marketing materials for each local market, reducing production, design, and
localization costs. Standard marketing strategies also allow for quicker deployment of marketing
initiatives in different markets, leveraging global marketing assets and strategies to penetrate
new markets faster. A standardized approach can ensure consistent product offerings and
features across different markets, maintaining the same product quality and specifications.
Conclusion
McDonalds and Burger King, two global fast-food chains, have implemented different
strategies for cultural adaptation in different markets, which have resulted in varying outcomes.
For instance, in the United Kingdom in 2022, McDonald's local strategy appeared to have
generated more positive results compared to Burger King, as depicted in Figure 1 versus Figure
3.
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McDonald's local strategy in the United Kingdom seemed to have garnered higher levels
of brand awareness, popularity, and customer visits. The strategy appeared to have resonated
well with the local consumer preferences and cultural nuances, resulting in increased customer
engagement and social media buzz. The brand may have effectively utilized advertising and
other marketing initiatives to create a strong presence in the local market, which could have
contributed to its higher visibility and customer engagement. Although the results favored
McDonalds, Burger King’s standard marketing strategy does have its benefits if done correctly.
Implications for Future Research and Practice
To expand further on why further research is necessary, it is important to acknowledge
that analyzing just two major companies may not provide a comprehensive understanding of the
issue at hand. For instance, the two companies studied may not be representative of the broader
industry, and different companies may have varying levels of success or challenges.
Additionally, I chose two companies from the same industry. Potential research can be done on
various companies in various industries. For example, supermarket ALDI, or furniture store
ALDI. Therefore, future research should seek to analyze a wider range of companies and
industries to provide a more complete and accurate understanding of the issue. Additionally, it is
important to evaluate the size of the companies being evaluated as well because in this case,
McDonalds is a much larger company then Burger King. This study offers valuable insight for
marketing managers in terms of learning the importance of cultural relevance, market
segmentation, resource allocation, and brand consistency. These insights can inform marketing
managers of which strategies and tactics from both the standardized and localized approaches are
the most beneficial for a successful global marketing campaign.
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Limiting the research to a comparison between the US and Europe, specifically the UK,
overlooks other important regions that may have unique experiences and perspectives. Focusing
on just the UK, for instance, limited the international aspect that I was originally trying to
achieve when I first tried to answer my research question. For example, companies in Asia,
Africa, or South America may face different challenges or have different approaches to the issue
compared to those in Europe and North America. Thus, future research should aim to investigate
a more diverse range of regions to gain a global perspective on the issue.
While information was considered in the analysis, the perspectives and opinions of
stakeholders were not fully examined. Throughout my analysis on this issue, I only had access to
a limited amount of secondary data. As a result, I was limited to what I was able to analyze and
interpret as a result. This is an important area for future research to explore, as it could provide
insights into how different stakeholders view the issue, what their priorities are, and what
strategies they believe could be effective in addressing the problem.
