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Successes and blunders in International Marketing

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rebecca pera

on 14 March 2017

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Transcript of Successes and blunders in International Marketing

The aim is to equip students with the tools to handle the challenges and opportunities of multiculturalismDouble click anywhere & add an idea
“Much of our difficulty with people in other countries stems from the fact that so little is known about cross-cultural communication.”

~ Edward T. Hall ~
Intercultural Communication
"Specific" Cultures and "Diffused" Cultures
How separate we keep our private and working lives?
What happened?
2005, his withdrawal in Japan after 5 years from the opening of his first store.
Its strategy of mass marketing by using the high volume purchasing savings with low price didn’t appeal.
- Japanese housewives have their habit to buy few things everyday in their routine
- Japanese would have wanted premium price products
- More of a variety
Launched in September 1994, Kellogg's initial offerings in India included cornflakes, wheat flakes and Basmati rice flakes. By September, 1995, sales had virtually stagnated. Indians poured hot milk on the flakes made them soggy. They also liked to add sugar to their milk. A typical, average middle-class Indian family did not have breakfast on a regular basis like their Western counterparts. In April 1995, drop in sales from its distributors in Mumbai. There was a 25% decline in countrywide sales since March 1995
Cadbury had decreased its production in India. Adults refrained from eating chocolates and were in a way reluctant to do so because of the kids' image associated with it...
Coca Cola
Open Happiness in
The Happiness Factory commercials were designed to promote “optimism” and “positivity". Coca-cola installed a vending machine, a few months ago, on a university campus in Singapore as part of the company’s ‘Open Happiness’ campaign. This might not sound out of the ordinary, but the vending machine is a dispenser with a twist; it gives out cans of coke when hugged.
In Singapore, displaying affection in public is not traditional, and this could have been used as a reason to not export what is originally an exuberant American-style idea to a seemingly more conservative foreign culture.

With a spread across 119 countries and with more than 31,000 restaurants, McDonald’s had managed to resolve one of the age-old dilemmas of marketing, the tension between implementing global standards or adapting to local tastes and preferences.
What happened?
1. The Indian breakfast is heavy
2. Indians have spicy and hot food for breakfast
3. Indian breakfast is known for its variety
4. Kellogg hinted that the Indian breakfast was not nutritious. This deeply hurt the sentiments of Indians
5. Kellogg corn Flakes have to be consumed with cold milk
The world’s local bank
In April 2011 called 'How Spicy is McSpicy'. The campaign was developed by McDonald's global advertising agency, Leo Burnett. The campaign initially focused on creating a buzz around the new products to be introduced.
20 Millions of followers
Blog translate in more than 20 languages
Is it a Blog or is it a Social Network?
P&G Adapts Gillette Razors for the Indian Consumer
In 1984 Gillette made the decision to enter the newly emerging market of India but inevitably faced many challenges to become a prominent player in the world’s largest blade market. Considering the cultural, administrative, geographic and economic differences between this new emerging economy from North America, Gillette changed its product-line, operations and other aspects of its value-chain.
a need for a razor that can manage longer hair, lack of running water in rural areas, differences in gripping patterns. Externalizing the manufacturing process to India has allowed for a very affordable razor for Indian shavers.
Rebecca Pera - PhD

Consultant expert on new product and service development and Executive trainer on Creativity and Innovation issues (General Motors at present)
Professor in
User and Social Innovation
at Politecnico Milan
Full transcript