An international company has to consider the social temperature and
culture of the country that it is placed in when deciding what
distribution channels and marketing messages they will use. They
have to consider if the distribution channels available will allow
them to reach their target market and allow them the best possible
outcome for sales an profit. For instance, if your target market
shops more on Sunday's, having a distribution channel that does
not operate on Sunday's would not be beneficial. Another example
of this is how you choose to market the product. You would
not want to create a religious based message in a country with
strict religious rules or culture. It's important to study and learn
the country and culture you are running a business out of when
planning marketing and distribution channels. Another important thing
to consider is the country that you are selling or shipping products
to. You want to make sure those distribution channels and the
marketing messages you are using are not offensive to your target
audience and does not go against the rules, social and cultural
lifestyle if that country. An international company will change its
channel strategy based on country due to the existing conditions
within each country. For example, if a company that is used to
distributing its product through channel partners and enters a country
where that channel partners are not necessary, or just do not
exist, then they will have to adapt.There are many ways to adapt,
you can set up your own distribution enterprise as part of the
company and do it yourself, or you can also announce that there
is demand for a distribution system for your product and there
will always be merchant types willing to engage in this arbitrage.
Obviously some countries will be easier to do this in than others.
One potential issue you can run into going into anther country if
you need to setup your own distribution is, they may have
protectionist policies where they don't want you to crush their local
companies so they may prevent you from doing some of these
things. Overall, the easiest countries to extract money from are
those that have the most liberal free trade policies. In most
countries, Apple uses a direct distribution channel, whereas India uses
an indirect one. In Western countries, Apple directly sells its
products to customers in its stores. In India, Apple sells its
products through resellers or third-party sellers. In the international
market, Apple focuses its marketing strategy on providing customers
with innovative products and high-value services innovative products
and high-value services to its customers. In India, Apple focuses
its marketing strategy on making customers want to look cool and
be a part of a ''special'' community. International distribution strategy
is the process of selecting the right export countries, finding the
right distribution channels and positioning your product or service in
such a way that your sales starts to grow. This requires local
knowledge of the market and a well-structured plan.You should
typically look for the markets where your product category or the
demand for your services is growing. this provides the best chances,
or you should have an "unfair competitive advantage that others
can't copy easily.With general country data or websites like Trademap,
you can find information to make a first selection of a few
countries that may look promising. You can also check what
competition you can expect.If you want to enter a new market
and pertaining to choosing the right distribution channels, you can
set yp your local sales:
Local departments -hiring staff and facilities and initiating all marketing
yourself
Working with channel partners- distributors with experience in shipping
and importing
Online- if your product is standardized and can be easily shipped,
then online sales is certainly an option. Considering distribution
channels, such as direct and indirect channels, international companies
can change their distribution channels and/or marketing messaging based
on the country. A good example of this would be Apple Inc.
by global development and emerging into other international markets.
One thing Apple Inc. did was to expand and market its
products globally and it was successful with both direct and
indirect distribution channels. For their direct distribution, Apple Inc,
created and set-up countless retail stores. This allowed the display
and ease of products, but also offered support for its customers.
For their indirect distribution, they provided suppliers and retailers
internationally. For instance, one of Apple's largest suppliers is
located in China. However, they have other emerging markets in
India, the Middle East, and South America. I believe the reason
countries are thriving is due to importing and exporting goods
and services. But in order to thrive, countries need to understand
what the target market is in the specific country. Not only
that, but they also need to adapt their communication channels as
well. For example, if one country wants to expand their business
on trainings in cyber security, it would be most beneficial to
look at countries with the biggest IT industry such as India.
Often times, if someone in the United States is looking to
expand their cyber security business, they’ll travel to India to
gain some expertise or additional training. Before traveling to do
business with another country, such as India in this example, it
is beneficial to do research on how the natives of that country
communicate with one another. When trying to expand your
business, if the natives see that you are trying to at least
embrace their culture or methods of communication, they’ll more
than likely agree to do business with you this bringing in more
revenue. Product advertising focuses on pioneering, competition, and
reminder. In order to gain business, the advertisers must convey
their message clearly and concisely. It is challenging for a
business to paint an accurate picture with words in their own
country. However, it can be even harder when a company is
trying to make a presence north or south of the border or
halfway around the world. There are times when a product’s
advertisement can get lost in translation and give an entirely
wrong message. Not only can this be an embarrassment to the
advertiser, but it can also be detrimental to the profit margin.
There are a few companies that found their product’s slogan was
lost in translation. American beer company Coors would bring their
“Turn it loose” slogan to Spain. When the phrase was translated
to Spanish, the slogan was interpreted as “Suffer from diarrhea.”
If that is not a crappy interpretation, I don’t know what is
(pun intended). Kentucky Fried Chicken had an advertising snafu
back in the 1980s when it opened restaurants when it went to
China. KFC’s “finger-lickin’ good” slogan was lost in translation. It
became “Eat your fingers off.” After fixing the blunder, KFC has
recovered and opened 4,400 restaurants in the past 40 years. In
Japan, Proctor & Gamble printed Pampers diapers with an image
of a stork on its packaging. In Japan, storks do not carry
babies to the parents as they do in American folklore, so the
imagery made no sense. In Japanese legend, babies arrive on a
giant floating peach, so the packaging had to be redesigned to
fir the Japanese culture.
GROWTH & STRATEGY
The lines between meals and snacks are blurring, and consumers
are never satisfied picking between taste and nutrition, affordability
and quality, snack-time and meal-time. From an on-the-go “second
breakfast” to a mindful moment of indulgence in the evening,
consumers decide what and how they want to eat.
People have less free time as they work longer hours with
longer commutes. They want snacks that support a healthy lifestyle,
providing nourishment and nutrition for their active, busy lives.
When snacking, there is a desire for convenient and delicious
options that people can feel good about eating made with less
energy, water, and waste - all with ingredients they know and
trust.
That’s why at Mondelēz International, we’re using our unique
portfolio of flavorful brands to fulfill the global need for
snacking. We’re leading the future of snacking by focusing on
three strategic priorities.
Growth
Our consumers are the reason we want to be the best snacking
company in the world and why we put them at the heart of
everything we do. With our consumers in mind, we're focused on
accelerating growth by investing in both our global and local
heritage brands. We are implementing innovative ideas and tactics
at all levels, driving growth in new channels, and building new
and existing partnerships that best serve our consumers.
Execution
We're focused on continuously improving everything we do - from
building a world-class supply chain to achieving marketing and
sales excellence. A key component to our operational performance
is our digital transformation. This approach, made possible by our
vast capabilities and diverse culture, helps identify and enable
additional growth opportunities.
Culture
We empower our local teams to innovate and deliver consumers’
snacking needs while continuing to leverage opportunity on a larger
scale to most efficiently support our growth strategy. Mondelēz
International is committed to investing in a diverse and talented
workforce that helps our business move forward with greater speed
and agility.
Examples of how international company (such as Unilever) changes
distribution channel;
-Unilever changes the distribution channel to target customers and
ensure direct access
-Unilever also changes the distribution channels based on the
efficiencies of the modern technology
-Desired final price on the various household products also impact's
on the companies distribution channels
The examples of how International Company (Unilever) changes
marketing messages;
-The adverts of Unilever are developed based on the culture of
the Country
-Unilever different promotional mix based on the target country.
Examples of how international company (such as Unilever) changes
distribution channel;
-Unilever changes the distribution channel to target customers and
ensure direct access-Unilever offers various consumer and household
goods. The company have a more flexible distribution channel that
ensures direct access to the customers through the various
supermarkets, malls and other retail outlets globally.
-Unilever also changes the distribution channels based on the
efficiencies of the modern technology-development in the technology
and other approaches have made the company to develop a
distribution channel that is more efficient and more personalized to
the customers.
-Desired final price on the various household products also impact's
on the companies distribution channels -depending on the desired
final price, Unilever may make changes to the distribution channel
intermediaries. This ensures affordable prices on its various brands
such as the Persil, Domestos, Lipton,Dove among others.
The examples of how International Company (Unilever) changes
marketing messages;
-The adverts of Unilever are developed based on the culture of
the Country-advertising messages for Unilever differs depending on
the culture of the country to ensure the product is more
positioned to address the needs of a given culture and improve
on the sales level.
-Unilever different promotional mix based on the target country-
promotional mix would be integrated in countries that have more
digital customers such as the US,UK and India. This differs from
the intensive marketing strategies adopted in emerging markets.
international companies need to be able to adapt their marketing
specifically for the region that they're attempting to either break
into or market to. There are multiple things that need to be
considered when attempting to market to a separate audience in
regards to customs, cultures and even word choice and significance.
I remember a few years ago Top Gear ran a special in
Argentina and they were pretty much almost run out of the
country due to one of the presenter's license plate having FKL
on it which, some people took as a reference to the Falklands
war which upset a local veteran and started pretty much, a
country wide manhunt for all 3 presenters. All of that stemmed
from a completely randomly generated number plate which goes to
show, that you have to be even more cautious when attempting
to come with marketing for an item. Not only that but you
also have to take into account anything that your product could
be mistaken for or misrepresented by. Somethings that are not
offense in let's say somewhere like Japan could have a
completely separate meaning here Stateside simply due to language
and cultural differences between both places. The 4 P's of
marketing are product, placement, price, and promotion. They affect
the way a company moves through various phases to become
and maintain dominance as an international company. Promotion
becomes most important for positioning the company in such a
manner that a product can be twisted instead of revamped for
different consumer markets. Unilever must define its target markets
and determine those products that will match most with those
businesses and consumers. In addition to identifying which
distribution channels and price point would best serve those global
marketers and country markets. Unilever must ensure that their
advertising campaigns take into how consumer behavior is affected
by interior conditions that are demographics, knowledge, attitude, and
external influences that are culture and ethnicity in local markets.
The company should also take into the count of language,
beliefs, and business norms that are present in the country and
according to implement the strategies and pass on the marketing
message of the company. A clear example can be seen of
difference in marketing message when Unilever presents their product
in Europe and when they present their products in India. When
they launched their product in Europe they can charge high price
from consumers present in Europe as the majority of the people
living in Europe are in upper-middle-class whereas when Unilever
launched their product in India they tend to keep their product
price low compared to Europe as most of the people in India
are under poverty. SC Johnson is a large family owned company
headquartered in Racine, Wisconsin. They make a variety of
common household brands such as Ziploc, Raid, and Off!. They
have product presence in nearly every country on the planet. As
the marketing strategies are very different around the world SC
Johnson uses a combination of different naming conventions and
targets different primary groups.
One specific example of this particular strategy can be seen in
a bundled product package offered only in certain countries in an
effort to eradicate malaria. In Ghana, the WOW package combines
several different product lines that are used to repel mosquitos
and keep the household clean and insect free. The individual
products that make up the bundle have also had their scents
tailored to those preferred by the local communities. In addition,
product support offered in that country is much more detailed to
educate the population on how they can do their part to curb
the spread of malaria. We do not see this type of bundled
product offering or education in the United States as malaria is
not prevalent in our society.
International companies such as Unilever or Mondelez International
change its distribution channels or marketing messages based on
the product market specifically for that country. Being knowledgeable
and informed about the culture of a country it makes it easier
to identify the marketing strategy that works the best. A big
company that is international would be Apple. They are able to
export their products to different companies. Different companies
have different distribution channels and marketing messages based on
the country. An examples is, If Unilever wanted to sell its
products in Hawaii then the market researchers would do research
that surrounds the communities there. Another possibility could be
to create a business relationship with a successful business in
that country to create a partnership to help market and promote
the company's products, this is a great way to become successful
in another country too. You could also use someone for
advertisement that was born in that country such as a
commercial and have that person in it. That would draw in a
lot of people from that country and could gain interest in the
product even more. Mondelez products are increasingly commoditized,
making innovation and differentiation of its products essential in
developing a competitive advantage, in the snacking industry.
Mondelez products are increasingly commoditized, making innovation
and differentiation of its products essential in developing a
competitive advantage, in the snacking industry.Through selling products
in over 160 countries, giving them less exposure to region-specific
turmoil, Mondelez grows organically by trimming unnecessary costs,
making the company leaner. This has significantly boosted vital
performance indicators over the years. Their diversification strategy
has generated many cost synergies, and by acquiring competitors in
a particular category, Mondelez has gained market leadership
positions globally.They have been and still are looking to sell
brands to make the company leaner and more profitable. Recently,
in May 2019, Mondelez completed the sale of its Middle East
and Africa (MEA) cheese business to Arla Foods, to increase its
exposure to the faster-growing snack categories such as biscuits and
chocolates. Experimenting with new product innovations, for example,
Oreo 'Thins' range became a global success, with the idea first
being introduced in the Chinese market, to satisfy the consumer
desire for healthier, thinner cookies, while retaining the same taste
and quality. The majority of Mondelez's cost advantage is derived
from economies of scale, achieved by leveraging its global
footprint as a response to the changing consumer preferences and
trends, Mondelez can leverage its current portfolio of power brands
to fuel future growth investments and marketing analysis to build
and secure market share, as the industry shifts towards healthier
and premium snacking. International companies change their distribution
channels and marketing messages based on the country where they
are located. Countries globally have diverse cultures and differences
that require a company to have local knowledge and structured
planning. International companies must know and work with the
cultural differences within their operations. yy Distribution channels
must adhere to the country's local, import, and export laws.
Companies are required to meet specified requirements and licenses
for delivery. Research must be done to know who you are
marketing to and their product expectations. Marketing messages will
change to accommodate and attract the local culture, without
changing the brand integrity. Markets where products are becoming
popular and sought after can be marketed showing the benefit to
the customers in the new international areas.
Coca Cola has high demand all over the world. The company
has had to change its product and marketing to adapt to the
different countries while keeping its brand image at the high
standard they have built. An example of the Coca Cola company
adapting is in parts of Africa where there is not a highly
developed infrastructure. Coca Cola Company has been able to
solve this problem by distributing to vendors in small quantities
due to many vendors not having the finances to buy in bulk.
Transportation was affected by locations, and methods of transport
were revised, such as canoes to reach remote areas. The warm
and humid climate in Africa is combated by solar-powered coolers.
Glass bottles are used in poverty-stricken places to generate
recycling. Coca Cola Company markets to customers that the
savings of using recyclable glass are passed on to the customers
and that the customers are only paying for the cola and not
the packaging. Coca Cola Company successfully markets to different
countries by building brand and sentiment with the culture of
each country.
One of the biggest challenges of global marketing is not only
communicating a consistent message and brand image, but developing
a deep understanding of the cultural differences that separate
consumer markets from one another.
Fortunately for multinational corporations, internet analysis and tracking
technologies have grown more advanced, providing insights into
customer behavior both online and offline. Because of the existence
of the Internet, people prefer to organize themselves into much
more concentrated groupings and in far higher concentrations than
in offline environments. Social networking websites and personalization
features, for example, may provide useful insights to corporate
advertisers seeking to enter difficult-to-reach and international audiences.
Regardless of its size or visibility, a global brand must adjust
its country strategies to take into account placement and
distribution in the marketing mix. For example, not all cultures
use or have access to vending machines. In the United States,
beverages are sold by the pallet via warehouse stores. However,
in India, this is not an option.
Companies like Unilever and Mondelez do tend to change up
their distribution channels based on the ever evolving technology.
This is efficient and can be personalized to their markets.
Unilever changes the distribution channel to target customers and
ensure direct access
-Unilever also changes the distribution channels based on the
efficiencies of the modern technology
-Desired final price on the various household products also impact's
on the companies distribution channels
The examples of how International Company (Unilever) changes
marketing messages;
-The adverts of Unilever are developed based on the culture of
the Country
-Unilever different promotional mix based on the target country.
Changes distribution channel;
-Unilever changes the distribution channel to target customers and
ensure direct access-Unilever offers various consumer and household
goods. The company have a more flexible distribution channel that
ensures direct access to the customers through the various
supermarkets, malls and other retail outlets globally.
-Unilever also changes the distribution channels based on the
efficiencies of the modern technology-development in the technology
and other approaches have made the company to develop a
distribution channel that is more efficient and more personalized to
the customers.
-Desired final price on the various household products also impact's
on the companies distribution channels -depending on the desired
final price, Unilever may make changes to the distribution channel
intermediaries. This ensures affordable prices on its various brands
such as the Persil, Domestos, Lipton,Dove among others.
Changes marketing messages;
-The adverts of Unilever are developed based on the culture of
the Country-advertising messages for Unilever differs depending on
the culture of the country to ensure the product is more
positioned to address the needs of a given culture and improve
on the sales level.
-Unilever different promotional mix based on the target country-
promotional mix would be integrated in countries that have more
digital customers such as the US,UK and India. This differs from
the intensive marketing strategies adopted in emerging markets.
The challenges can be both tied to communication and cultural
differences, which are mentioned in my 4 points above.
Additionally, cultural differences can also be tied to religious
differences which can cause issues in the supply chain a few
times a year. In my industry as a transportation broker when i
quote my clients on lanes, from the month of November until
mid Jan I have to take into account all the religious holidays
and increase the rate a bit, a lot of my drivers are not
from the US and celebrate different religions during these 3
months meaning my supply chain flow will be interumpted
drastically until its over. There are four main challenges when it
comes to international distribution. First is supply chain management.
Every supply chain is inherently variable. When aspects of your
business are more comprehensive than the U.S., unpredictability can
escalate. Natural disasters, geopolitical turbulence, and even minor
transportation difficulties can affect global distribution. The second
thing I can think of is Currency fluctuations. When conducting
business overseas, you should be prepared for oscillating costs you
conduct business overseas, and you should be prepared for prices
to oscillate. Exchange rates continually fluctuate due to supply and
demand. We recommend ensuring currency fluctuations are integrated
into your company’s enterprise risk-management plan before embarking
on global distribution. The third thing I can think of is the
preservation of intellectual property. Intellectual property rights are
less straightforward in other countries. IP infringement can occur
through many actions and, more often than not, result in severe
damage to your business. Last, compliance with international
regulations and standards. Quality standards and rules regarding
imports, exports, safety, packaging, labeling, and more differ around
the world. Globalization is less of a trend and more of a
necessity these days. There is no denying that the most
successful products in today’s economy are global ones.
